A well-written construction contract can serve as a roadmap for a project, clarifying the work scope, project duration and costs, as well as obligations and risks accepted by the involved parties. Consequently, construction contracts can:
- Facilitate the completion of projects
- Compel compliance with specific procedures, budgets, and timelines
- Establish guidelines for certain possibilities
- Delineate how to address and resolve disputes
To devise a well-written construction contract, you should include certain essential terms. Please be aware that the specifics of your project may require additional terms.
Whether you are a contractor, developer or any other party involved in a construction project, you can avoid additional costs, delays and problems with your project by including these essential conditions in the contract.
1. The Scope of Work and Method for Addressing Scope Changes
These provisions can detail the extent, order, and timeline of the work. They can also explain how to request, approve, and address changes in the established work plan.
2. Cost and Fee Structure
In addition to enumerating the budget, these terms can establish maximum prices or stipulate how to calculate costs (for example, a fixed-fee or cost-plus structure).
3. Allowances
This condition can specify the designated budgets for various facets of the project while explaining the process for handling allowances.
4. Surety Bonds
Providing a guarantee and financial protection, contract terms related to surety bonds can cover the conditions associated with bid bonds, performance bonds, and payment bonds.
5. Insurance Requirements
This contractual condition can define the minimum insurance coverage various parties involved in the project must carry. It can include requirements for coverage such as general liability, workers’ compensation, and motor vehicle liability.
6. Dispute Resolution Options
Establishing the process and methods of resolving conflicts, this condition can stipulate that mediation or arbitration must be pursued whenever the involved parties disagree or may be in breach of contract.
7. Termination Provisions
This provision can explain when firings can occur and how to handle firings or defaults.
These conditions can protect you as you set up your next construction project — but this is by no means an exhaustive list of essential conditions for construction contracts. The best way to be sure that your construction contract includes all of the necessary provisions is to work with an experienced construction lawyer.
Need more answers about construction contracts? Call (703) 224-4436 to speak with the experienced construction attorneys at Robbins Law Group, PLLC.
We have extensive experience in partnering with various parties involved in construction projects including owners, developers, contractors, construction managers, suppliers, design professionals, and sureties.
We are ready to listen and provide you with client-focused service and innovative solutions to any construction legal matter.
Contact Us
If you find yourself in any of the situations mentioned above, or if you need assistance with another type of construction matter, contact lawyer Seth Robbins, at the Robbins Law Group, PLLC (703) 224-4436 to learn more today.
