Construction contracts have two purposes: (1) protection and (2) expectation. By achieving these purposes, they serve to protect the contractor and the client. They also relay the expectations that both parties have for the project.
In order to carry out their goals, construction contracts need to be as concise as possible, yet they also need to contain a great detail of information. This is where it pays to have an attorney on your side who can make sure that your construction contract is drafted appropriately.
Here’s what your construction contract should include:
- A description of the project: The more detailed this is, the better. A detailed description can stop the client from changing the scope of the project. It can also help to ensure the contractor does what he or she is supposed to do.
- All of the pay terms: This should include the estimated cost of supplies and labor for the project. In many cases, it will also include the contingency costs. We discussed these costs in the previous blog post in detail, but in a nutshell, these are unexpected costs the client might have to pay for unforeseen aspects of the project.
- A deadline and project timeline: These terms are especially important because there are often penalties for contractors not finishing projects on time. You should make sure that the deadline and any penalties are clearly conveyed in the contract.
We realize the drafting of your construction contract will not be easy to achieve without assistance. Legal contracts can be very complex and confusing. As such, you might want to reach out for professional assistance to help you with your construction contract drafting needs.