Construction projects are built on contracts, so it is important that these contracts are solid and legally enforceable. A vague contract can derail progress on a construction project, causing unnecessary delays and possible litigation. The following is a brief overview of what should be included in a construction contract.
What to include in a construction contract
Construction contracts often consist of many individual documents addressing the various aspects of the construction project. Even if it is made up of only one document, that one document often includes multiple pages and can be complex. What is important is that all details of the project are included in the contract.
A construction contract at its most basic should include dates that work is to be performed and should specify what both parties are obligated to do. Most construction contracts have several sections that identify the scope of the work, the terms under which the work is to be performed and the conditions of the agreement.
Differing site conditions should also be addressed on a construction contract, with language that protects against unforeseen circumstances. Many construction contracts also contain escalation clauses that protect the contractor from unanticipated charges.
All of this being said, there are many types of construction contracts, and these types are specified based on the way the disbursement is going to be made.
Make sure your construction contract is airtight
Construction contracts should be very detailed. Even aspects of the job that seem to be common sense should be included in the contract. A solid construction contract can help the whole project run smoothly, for the benefit of all parties involved.
