Contractors and clients both want to protect their interests when a new project is starting. The most effective way to do this is by creating a solid contract that clearly outlines everything related to the project.
There are several points that must be included in a construction contract. These clauses are fairly universal in these contracts, so it’s important to understand them.
Terms of the project
The terms of the project are the focal point of every construction contract. This should include a detailed description of what the contractor should do. Some contractors also spell out what supplies are being used and whether any subcontractors will be hired. The timeline for the project and the terms of what constitutes a valid delay, such as inclement weather or an unplanned delay in receiving vital supplies, for the project. Payment clauses, such as the deposit due and any payments required, are also vital components in these projects.
Dispute resolution
There are times when a dispute may occur during the construction project. Most construction contracts include information about how these disputes will be handled. There may be a clause that notes that alternative dispute resolution is the option that must be used, so both parties must agree to the chosen method, which may be mediation or arbitration.
Anyone who’s signing a construction contract should ensure they agree with all the terms and that they fully understand them. Working with someone who can review the contract and ensure it’s in your best interests is critical if you’re entering into a contract for a construction project.
