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What should I include in a construction contract?

On Behalf of | Jun 28, 2021 | Uncategorized

If you work in construction, you know better than anyone the importance of a solid set of foundations. Yet this applies not only to the building but to your working relationships too. While a construction contract is made of paper rather than concrete and steel, it is every bit as important to your project’s success.

Whenever you work with someone, you need a contract. It applies to people you work for and people you employ or subcontract. Delays and misunderstandings can be costly in the building industry, so it is essential to tie people down to their promises.

Make your construction contract as precise as possible

If the other party breaches the contract, they will look for gaps that may allow them to escape their commitment. So the more detailed the agreement, the less room for excuses. Here are some of the things to include:

  • Inclusions and exclusions: Making clear what you include is crucial. However, people can still make assumptions, so it is best to clarify what you do not include to avoid doubt.
  • Timing: If you need a job done in 20 days, put it in the contract and put the penalties for delay. That way, people are more likely to complete the work on time.
  • Pricing and payment: Money is one of the top causes of problems between people. If you have wages to pay and materials to buy, you need clients to pay you on time.

Not all construction projects go as planned. Unforeseen eventualities or changes in what the client wants can require extra work or alterations. Be sure to update your contract whenever there is a change.

A well-thought-out construction contract can reduce the chance of legal problems later.