Before handing a builder any money, specific documents protect you from the worst outcomes. Securing them upfront is basic self-protection in custom building. Here are the top five documents ranked by importance — what every Middle Tennessee custom home buyer should get before any money changes hands.
#1: A Detailed, Fixed-Price Contract
The most important document. A comprehensive contract with fixed pricing, defined scope, timeline, and terms protects against nearly every custom-build risk. Never pay anything without a real contract in hand. The detailed fixed-price contract is the foundation of your protection. Get it before any money moves.
#2: Proof of Insurance
Current general liability and workers’ comp certificates, sent directly from the insurer. Without verified insurance, you’re exposed if anything goes wrong on the build. Confirming real, current coverage before paying protects you from serious liability. Proof of insurance is essential before money changes hands.
#3: The Payment Schedule
A written milestone-based payment schedule that ties payments to completed, verified work. This document ensures you never pay far ahead of progress. Securing a clear, protective payment schedule before paying anything is critical. The payment schedule is your protection against paying for work not done.
#4: Licensing and Bonding Verification
Documentation of proper licensing and bonding, verified with the issuing bodies. Bonding can provide recourse if the builder fails to complete. Confirming licensing and bonding before paying protects you. These documents verify the builder is legitimate and provide a safety net. Get them upfront.
#5: The Warranty Terms
Written warranty coverage detailing what’s covered and for how long after completion. This protects you when issues surface post-move-in. Securing clear warranty terms before committing ensures the builder stands behind the work. The warranty document protects you long after the final payment. Get it in writing.
Ready to Get Started?
Good Day Living provides every protective document our clients deserve. gdayliving.com or (629) 299-1460.
