Custom Home Contract Questions Charlotte

CHARLOTTE • CONTRACT FRAMEWORK • BEFORE YOU SIGN

Contract questions to ask before you sign in Charlotte.

Eight contract questions worth defending — on cost-plus vs fixed, change orders, allowances, draws, and warranty.

THE DIRECT ANSWER

What contract questions should I ask my Charlotte custom home builder?

Before signing a Charlotte custom home contract, ask about pricing structure (cost-plus with cap vs fixed price), change order pricing and approval process, allowance items vs locked selections, draw schedule and lien waivers, substantial completion definition, warranty terms (workmanship plus structural), dispute resolution, and what happens if the budget exceeds the cap. Each answer should be in writing and defended in plain language.

WHAT TO PIN DOWN

Four contract terms worth defending.

PRICING

CP + cap

Or fixed, in writing

CHANGE ORDERS

Documented

Priced + approved up front

DRAWS

% complete

With lien waivers

WARRANTY

Written

Workmanship + structural

THE EIGHT QUESTIONS

Eight contract questions worth getting in writing.

Pricing structure

Cost-plus with cap (open-book trade invoicing) or fixed price? Each has tradeoffs at the luxury tier — and the right choice depends on scope clarity and change tolerance.

Change orders

How are change orders priced — markup percent, fixed fee, or pass-through? Who approves and signs? What is the response time?

Allowances + selections

What is locked at contract and what is allowance? Allowances are budget risk — minimize them, document them, and reconcile them transparently.

Draws + warranty

Draws against percent complete with lien waivers from every trade. Written warranty — typically one year workmanship plus structural and systems coverage per state law.

A WORD ON CONTRACTS

Contracts are the time to be unromantic.

The contract conversation is the time to ask every uncomfortable question, write every answer down, and clarify every scope line. The right builder welcomes it. The wrong builder pressures you to sign. Custom home contracts are long, technical documents — review them with counsel familiar with construction law, and never sign under pressure.

Peters Custom Homes provides contract drafts in advance, welcomes counsel review, and walks every page in plain language. The discovery call is where the conversation starts.

FREQUENTLY ASKED

Contract questions Charlotte families ask.

Should I use my attorney to review the contract?

Yes. Always. A construction attorney familiar with North Carolina residential construction law is a small investment against a large project.

What is the difference between cost-plus and fixed price?

Cost-plus means trade invoices pass through at cost with a builder fee on top — open-book and transparent. Fixed price means a single number that includes all margin. Both can be right depending on scope clarity and your tolerance for change.

What is a draw schedule?

A schedule of payments tied to construction milestones or percent complete. Each draw should be supported by lien waivers from every trade paid in the prior draw — protecting you from subcontractor lien claims.

What warranty should I expect?

Typically one year workmanship, plus systems and structural coverage per North Carolina law. Beyond the formal warranty, the right builder stays reachable for years.

What if the budget exceeds the cap?

Depends on the contract. In a true cost-plus-with-cap contract, the builder absorbs overruns above cap unless caused by owner change orders. Read the cap definition carefully — it is the most negotiated line.

CONTINUE READING

BEGIN THE CONVERSATION

Walk the contract — before you sign anything.

Forty-five minutes with Nicholas Peters to walk our contract framework, change order process, draw schedule, and warranty in plain language.