Things to consider when finalizing a construction contract
Construction contracts are very important documents, regardless of the size of the project. They include every detail pertaining to the project, from the work to be done, to the terms and conditions and the prices to be paid. Here are some things you should pay special attention to before finalizing a contract.
The contract will clearly mention what payment needs to be paid when and if any installments will be paid or when each payment will be paid. Moreover, the costs of labor and materials, and any additional expenses, such as transportation costs, will all be mentioned in the contract. It is a good idea to check all these amounts and any expected increases mentioned in the contract.
- Time frame
The time frame for the project, with the expected start date, the various phases of the project, and each of their expected finish dates as well the duration of the complete project need to be mentioned. Construction contract lawyers can help in adding clauses to the contract which may help enforce this duration, and keep the project on track.
- Transaction rules
Each industry has its own terms when it comes to transactions between the various parties involved. Before signing the contract, clarify any procedures that may not be mentioned in the contract, you can ask the contractor to clarify or have them mention it in the contract.
In case of any disputes, it is best to contact the other party, and clarify terms with them. These contracts usually include an arbitration clause to help settle any disputes, outside courts, through the assistance of lawyers.