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5 Things to Look For Before Signing a Construction Contract

When working on a construction project, you always want to work with a clear and well-drafted contract that includes detailed terms. These terms should include the work that needs to be done, the time frame of the project and specific terms and conditions of payment. In fact, the longer the contract, the better.

Before you sign on the dotted line of a construction contract, make sure the following are listed in full detail in the contract:

  1. Time Frame

The time table of the project is important as you want to make sure it is an appropriate amount of time to complete the project. Other time frames include the delivery schedule of supplies and materials along with the amount of time for payment. Also, if things are on a month to month basis, make sure this is specified. The length of these items should always be accurate and it is wise to include the term “date subject to change” in case of emergencies.

  1.     Price

The prices should always be clearly listed in the contract. This includes prices for materials, supplies and labor. The contract should also include any additional fees. On top of the prices, the contract should describe how the prices will be enforced with a detailed estimate. This is another part of the contract that needs to be double checked for accuracy.

  1.     Payment (method/penalties)

A construction contract should include the terms of payment including the method of said payment. It should be broken out into detailed items including installments, the cost of late fees and a section explaining the preferred method of payment.

  1. Materials

Other terms mentioned in the contract should also include an agreement to the goods and services provided. To ensure that the materials you want to use are going to be used, it needs to be included in the contract to prevent confusion. For example, if you want a quartz countertop, make sure it is specified. If any changes do occur during the project, make sure the contract is amended.

  1. Anticipated Issues & Resolutions

A dispute could always ensue during the construction project. Including an “Arbitration Clause” will allow disputes to be resolved outside of the courts, which is less costly and less formal. Methods on how to handle and resolve disputes should also be included in the contract, as long as they are beneficial to both parties.

Before signing a construction contract, meet with the experienced construction law attorneys at MKC Law Firm. Our team will make sure that the contract is detailed, accurate and fair.

 

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