When drafting or reviewing a construction contract, it’s important to watch out for a few important things. These contracts are designed to clarify what work needs to be done, how it should be completed, the costs involved, and much more. When drafted correctly, a contract can help to avoid disputes over a job. When written poorly, however, they can lead to costly legal battles.

Material Terms
In almost all construction jobs, it’s a good idea to identify the exact materials that are going to be used in the project. For example, if you don’t have the specific material terms in the contract, one party may have cherry wood in mind, and the other may be thinking of pine to keep the costs down. Needless to say, this will have a big impact on the project’s end result, and will almost certainly lead to conflict. Listing exactly what types of materials will be used can help you to avoid costly mistakes and possibly litigation.

Listing exactly how much a contractor or other party is going to be paid, how they will be paid, and at what points along the project the payments will be made is important. Including items like who will pay for any supplies, how subcontractors will be paid, and other related details are also critical for the success of a construction contract.

Time Frame
Identifying how long a job is going to take is one of the more important parts of a construction contract. In addition to including things like dates by which a given part of the project should be finished, it should also include what penalties will be issued if a project takes longer than indicated. For some contracts, there may be a clause that says if the contractor completes a job early, they get some type of bonus.

Termination Options
Ideally, a construction contract will only end once all the agreed-upon work is completed and payments are made. Understanding that it may be necessary to terminate a contract early, however, is an important part of any agreement. Identifying how to properly and legally terminate the contract can help to avoid any type of conflict or legal action should it become necessary.

Warranties & Guarantees
Having detailed information about the warranties or guarantees that the contractors (or others) provide on their work should always be in a contract. If this type of thing is not present, and something goes wrong, it will leave you in a much weaker legal position.

Let Us Help You with Your Next Construction Contract
Depending on the specifics of the contract, there can be many other things that need to be addressed and reviewed. Contact us to discuss all the ways we can help you before, during, and after you enter into any type of construction contract.