Before breaking ground on a dream home in Park City’s elite neighborhoods, most future homeowners are introduced to a builder through one powerful document — the construction contract. This contract defines not just the scope of work, but the expectations, protections, and financial roadmap for both sides.

That’s why anyone considering a Luxury Home Builder Park City should fully understand what they’re signing before construction begins. From foundation to fixtures, every detail counts — and every clause does too.

Understanding the Scope of Work

The scope of work section is the backbone of any custom home building contract. It outlines what the builder agrees to construct and typically includes detailed architectural plans.

Key Elements Include:

• Site preparation and grading
  
  
• Foundation, framing, and roofing
  
  
• Electrical, plumbing, and HVAC installations
  
  
• Interior finishes like flooring and cabinetry
  
  
• Landscaping and any outdoor features
  
  

Any vague descriptions should be clarified to avoid future disputes.

Payment Terms and Schedule

The contract should specify how payments are structured. Most custom builders use a milestone-based schedule.

Common Payment Phases:

• Initial deposit
  
  
• After foundation completion
  
  
• After framing and roofing
  
  
• After MEP installations
  
  
• Final payment upon completion
  
  

Also ensure it includes how upgrades and change orders are handled financially.

Timeline and Delay Clauses

Luxury home projects often take over a year. Contracts should include clear timelines along with allowances for reasonable delays.

Look for:

• Defined start and end dates
  
  
• Construction milestone checkpoints
  
  
• Clauses covering weather, supply chain, or labor issues
  
  

Make sure there are realistic expectations for delivery without open-ended timelines.

Warranty Coverage

A credible builder backs up their work with warranties. These typically cover different areas for different time periods.

Common Warranty Terms:

• 1 year for workmanship and materials
  
  
• 2 years for major systems like HVAC and plumbing
  
  
• 10 years for structural defects
  
  

Warranties should be clearly defined, with written coverage from third-party insurers when possible.

Allowances and Material Specifications

Contracts include budget allowances for items like flooring, lighting, and cabinetry. These allowances affect both cost and design flexibility.

Be sure to check:

• If the allowance fits your design expectations
  
  
• What happens when you go over budget
  
  
• Whether you can make selections or if choices are builder-limited
  
  

Clarify how these choices impact your timeline and budget.

Change Orders and Flexibility

Most homeowners request changes mid-project. The contract should detail the process for submitting and approving change orders.

This includes:

• How and when to request changes
  
  
• Whether builder approval is needed
  
  
• How pricing and scheduling are affected
  
  
• Required signatures to confirm changes
  
  

Documented changes reduce miscommunication and cost surprises.

Permits, Inspections, and Legal Compliance

It should be the builder’s responsibility to secure and manage all required permits and city inspections.

Confirm the contract includes:

• Builder is responsible for all necessary permits
  
  
• Inspection scheduling is their duty
  
  
• Costs and penalties for failed inspections aren’t yours
  
  

This ensures smooth progress and legal compliance throughout the build.

Dispute Resolution Process

Disagreements can happen. A good contract outlines how those will be resolved without litigation becoming the first step.

Typical options include:

• Mediation between client and builder
  
  
• Binding arbitration if unresolved
  
  
• Legal proceedings only as a last resort
  
  

Clear resolution paths help avoid project delays and financial strain.

Builder’s Insurance and Liability

Insurance coverage should be comprehensive and active throughout the construction process.

Make sure the builder carries:

• General liability insurance
  
  
• Workers’ compensation for employees and subs
  
  
• Builder’s risk coverage for theft, fire, or weather-related damage
  
  

Ask for current certificates before any work begins.

Final Walkthrough and Punch List

Before handing over the keys, most builders perform a final walkthrough with the client.

This identifies:

• Minor defects needing correction
  
  
• Missed finishes or incomplete installations
  
  
• Cleanup and preparation for move-in
  
  

Withholding final payment until the punch list is completed is a standard and advisable practice.

Project Sign-Off and Handover Documents

Once construction is complete, you’ll need proof that everything’s in place and ready for occupancy.

These should include:

• Signed completion certificate
  
  
• Warranty documents
  
  
• User manuals for smart systems and appliances
  
  
• Copies of passed inspections and city approvals
  
  

Having everything documented ensures you’re fully protected post-move-in.

Red Flags to Avoid in Builder Contracts

Some contracts include vague or biased clauses that should raise concern. Be cautious if you see:

• Undefined allowances or “TBD” materials
  
  
• No mention of change order or dispute procedures
  
  
• Open-ended timelines with no builder accountability
  
  
• No insurance or warranty documentation
  
  
• Weak language around delays or inspection responsibilities
  
  

Having your attorney review the final draft is always a smart move.

Conclusion

Building a luxury home means more than picking finishes — it means protecting your investment with a detailed, fair, and enforceable contract. By knowing what to expect and what to question, you can enter the process with clarity and confidence. If you’re building in Greener Hills, ensure every clause reflects the high standards and attention to detail your home — and your neighborhood — deserve.