Accordingly to a recent blog post, I read from a renowned part-time blogger is that the value of a construction contract is to ensure that the interests of both parties involved in the project are protected from its start to completion. The provisions of a construction contract are the specific terms that highlight the obligations of the parties involved and other essentials of the project. Nevertheless, the following are the most important provisions of a construction contract.
When planning a construction or renovation project, you may have a lot of expectations regarding the scope of the work to be done. But, you should not make such assumptions when writing a construction contract. To avoid misunderstanding and disputes with construction workers, the contract should clearly describe the specific works that you need and, which the contractor has agreed to perform.
Besides, the works described in the construction contract should also adhere to the existing building codes and project plans. A precise description of the scope of the work will eliminate any future disputes regarding the obligations and responsibilities of the contractor.
Provision for Delays
Time is a critical aspect in every contract and, that is why it must specify how long the project will take from start to completion. However, delays do occur and could negatively impact your project. While delays caused by natural events are exempted, a construction contract should provide a way for resolving delays resulting from the negligence of either party. The provisions should outline the amount of liability that the contractor or project owner is entitled to in such events.
Terms of Payment
This is an area of concern for every construction worker when signing a contract. Many disputes usually result from disagreements with the terms of payment. The contract should clearly show the costs of the project, how and when they will be covered, who will issue the payments as well as the specific payment methods.
Generally, all the provisions of a construction contract are important to the success of the project. But, you should be very keen on the ones discussed above to ensure that your project runs smoothly according to plan.