The Art of Crafting Airtight Construction Contracts

The art of crafting a construction contract is one of the most important, if not the most important responsibilities of your construction attorney. As a legal document, a construction contract defines a wide variety of agreements between a property owner and a general contractor. It establishes the expectations of both parties, as well as describes the details of a project that allows the project to move forward in a timely manner. Without a construction contract, common disputes might erupt, without a legal mechanism to resolve the disputes.

With Alves Radcliffe in your corner, a construction contract should include the following details:

Contact Information

Every section of the contact information should be fully completed for a construction contract to represent a legal document that is considered valid. This includes both parties providing their legal names, as well as addresses and phone numbers. The contact information is typically located at the beginning of a construction contract. Without a fully completed contact information section and/or the addition of incorrect information, any legal disputes might not get resolved because the contract is not legally valid.

Work Description

This section gives a homeowner legal protection against a general contractor because it clearly spells out the description of all the work that is expected to be completed. Your construction attorney hammers out the construction work details with the general contractor and the general contractor’s lawyer. A work description section that does not clearly define work descriptions might make it difficult to prove a general contractor and/or a subcontractor failed to meet contractual obligations.

Work Schedule

Although a detailed work description can help you avoid costly and time-consuming legal action, this section means nothing without the addition of a work schedule. A work schedule section describes the start and finish dates of a construction project. It also sets important milestones for a general contractor to receive compensation. Your construction attorney should list certain events such as weather delays and supply chain disruptions that allow the general contractor to miss important work schedule milestones.

Cost Estimate

This section is the estimated cost that is broken down into major categories and sub-categories for expenses. The cost estimate section is the value of the project that a homeowner budgets for from start to finish. Your construction attorney lists costs in as much detail as possible to ensure your project remains within the budget. The cost estimate section also should describe the payment terms that involve the amount and the date of each payment.

Dispute Resolution Clause

If a construction project dispute arises, a construction contract should include a section that defines how both parties plan to resolve the dispute. Some of the most common types of dispute resolutions include arbitration and mediation. The goal of a dispute resolution agreement is to avoid getting involved in civil litigation, which costs you both time and money. A dispute resolution process is important for both parties, especially if they want to preserve a long-term professional relationship.

Finally, both parties should agree on which party assumes authority over specified project decisions. Although a general contract assumes authority over most decisions, a construction project can involve several contractors who make decisions that concern their trade specializations.