Contracts are the backbone of business transactions. This is especially true for contractors who are dealing with costly construction projects. Many of these projects are creative, so it’s particularly important to have comprehensive information in the contract.
All of these contracts should include the basics, including the information for both parties. It should also include all deadlines that apply. Because some construction projects depend largely on favorable weather conditions, having a provision that includes protection because of weather delays may be beneficial.
Scope of the Project
Construction contracts should include a complete outline of the project’s description. It can include as much detail as possible. For example, specifying materials and details may help to reduce the risk of issues with scope.
Payment Terms
The payment terms for the project are important. This may include the down payment amount and payments that are due at specific points during the project. It should also include the final deadline for payment. It’s a good idea to include wording that makes it clear that the client will have to cover additional costs that stem from things like increased material costs or changes in project scope.
Resolution Methods
Many contractors opt to include resolution methods in the contract. Some may want to avoid litigation, so the resolution would be an alternative dispute resolution method, such as mediation or arbitration.
If a breach of the contract occurs, the contractor should ensure they understand their legal options. These can vary, depending on the terms of the contract and the situation. Working with someone familiar with these matters may be beneficial.