A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.
A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.
In Delaware, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor hired to manage construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the hiring and oversight of subcontractors, payment schedules, completion timelines, insurance requirements, and the handling of mechanic's and materialmen's liens. Delaware law requires that contracts for home construction and renovation be in writing if they exceed $50, as per Title 6, Chapter 27 of the Delaware Code. The agreement must be clear to ensure that both parties understand their responsibilities and the consequences of non-compliance. Additionally, Delaware's Mechanic's Lien Law, found in Title 25, Chapter 27 of the Delaware Code, governs the filing and enforcement of construction liens to secure payment for labor and materials provided. Contractors must adhere to specific notice and filing requirements to enforce these liens. It is advisable for parties entering into a general contractor agreement in Delaware to consult with an attorney to ensure that the contract complies with state laws and adequately protects their interests.