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Key elements of a solid construction contract

When signing an agreement for a new building project, it is logical to assume that all parties want to initiate and fulfill the agreement with as little stress or dispute as possible. For this to happen, it is critical to make sure that anyone signing a contract clearly understands the terms, as well as his or her individual responsibilities. A solid construction contract typically contains certain key elements.

Be clear and specific regarding scope of work

If the terms of a construction contract are ambiguous, it opens the door for confusion and disputes. It is not enough to write that a contractor will ”build a wall,” because too much is left unsaid. How big is the wall supposed to be? What materials will be used to construct it? A detailed scope of work clause in a construction contract helps avoid legal problems that can arise if disagreements occur regarding the exact work that was to be completed.

A contract can also include the estimated time frame for a project, as well as any unique issues that are part of the plan. It is best to leave no stone unturned. The more detailed this part of a contract is, the less likely there will be disputes about how, when or what work was done or not done.

Always list who is in charge in a construction contract

Before initiating a project, it should be made clear in writing who has authority over the project. This person’s contact information should be included in the contract. Only this person may have the authority to make binding decisions about the project. If disputes arise regarding the scope of work or other contract issues, it is best to consult with a construction law attorney if attempts to amicably resolve the issue are unsuccessful.