Construction Contract

       We are currently preparing to sign our Construction Contract this coming Friday. The payments for the construction of our house are broken down into 4:

1.   Down payment, made when we retained the services of our architect, which was equivalent to about 5% of overall cost.

2.   First installment, due at the time of signing the construction contract, equivalent to about one third of the value of the overall project, minus the down payment paid earlier.

3.   Second installment, due when the structure of the house has been erected, again equivalent to one third of the overall cost.

4.   Third installment, when the house is complete. This is when the House Loan kicks in, allowing us a bit of room to breathe…

      We have been going over the numbers for the past couple of weeks and it's time to formalize our agreement, otherwise, we can't start building!

      Back in September, we started out with a Defined Construction Cost which included specific budget allowance for windows, equipment, flooring, etc. 

      We also had a list of features that are not part of the construction itself but are still needed, such as plumbing, gas installation, mortgage insurance, and others as well as "optional items" such as heating/air conditioning system, wood deck, underfloor heating, window mouldings, etc.  

      As we advanced with our plans and selections, we then added and subtracted from our optionals.  We of course supervised the budget closely from the start to avoid last-minute surprises.

     Once we sign the contract, we will also be able to proceed with the Jichinsai - ground breaking ceremony.  More on this in our next post...