Those not in the construction business would assume that the architect’s blueprints provide all the critical information needed to erect a building. But actually, the construction contract agreement is an equally essential collection of documents for owners, developers, contractors, subcontractors, and suppliers. These agreements outline the plan for multimillion-dollar projects, thus putting in writing what each party’s obligations and rights have as the project goes from the drawing board to occupancy.
Import details to look for
The construction contract agreement is the heart of the project, but some other contracts and agreements are a part of it. If done right, they all will complement each other and enable the project to run as smoothly as possible. The construction agreement will often include:
- Schedule: There should be a detailed schedule of the construction process that is marked by certain milestones. These are regularly updated and help all involved parties determine what they need to do (and plan for) in the present and the long term.
- Contract price: This describes the price and set possible additions and deductions part of the pricing structure.
- General conditions: A general conditions agreement puts the responsibilities and rights of each party in writing. If there is a dispute, this is where the parties turn. It also includes a predetermined process for resolving disputes.
- Special conditions: This outlines specific portions of the project.
- Scope of work: This details who handles what job during each phase of the project. It indicates the materials used, work guidelines and the quality standards of work. A change order procedure is also a part of this.
- Specifications document: This involves all requirements and technical data.
- Cost estimates: This is broken down by the type of work done. It includes the cost of labor, materials and parts.
- Contract laws: This involves governing laws, claims procedures, liens requirements, proof of insurance, final completion, and procedures for terminating or suspending work with a contractor.
Different projects have different contracts
There is no one-size-fits-all construction contract. Thus, it is essential to work with an experienced construction law attorney. These legal professionals can draft effective and binding agreements for all involved parties because they understand the nature of the work. They can also work with clients when disputes arise to resolve the matter efficiently.