Construction contracts are a necessary component of a construction project. This document helps to ensure that all parties involved in the construction project are aware of the project’s expectations and are on the same page. This can be a vital document to protect either party of the agreement, especially when unexpected issues arise. Construction contracts are legally binding agreements that thoroughly describe all of the expectations of each party involved in the construction project.
Scope of the Work
A construction contract needs to specifically outline the expected scope of the project. This will ensure that both parties are on the same page. It will also explicitly state expectations, ensuring that the project is completed as intended.
A construction contract often includes some kind of warranty. This is used to outline issues that the construction company will repair at no extra cost. This should be offered within reasonable limits.
The construction contract should outline the agreed upon payment schedule for the project. This usually indicates milestones at which the contracted company will receive payment for their work. Once these milestones are met, the owner is obligated to pay the contracted company the set amount.
There are many other aspects that are involved in a construction contract. These include the termination of services clauses, segments that indicate the procedure for poor weather or other uncontrollable things that impact the completion of the project, and more. A construction contract for a large project will necessarily be much longer and more thorough than a construction contract for a smaller project.
Contact Us for Information About Construction Contracts
Construction contracts are used to establish the scope and expectations for a project. These contracts help protect both parties throughout the completion of a construction project. To learn more about our construction services, contact us at E.K. Bailey today.