Having a construction contract agreement is a must to avoid any disputes even if you do a simple remodeling for your home. A duly signed construction contract agreement binds both parties to the contract legally. Therefore if you are a home owner or a developer who plans building a project, renovating an existing building or even remodeling your home, you must prepare a contract document before starting work.From progress payment terms,advance payment percentage to retention money and completion certificate,there are many important terms to include in your construction contract.
Although for large scale building projects, there is a consultant hired for such contracts management, for small scale projects it is common that home owner or building contractor prepare the contract agreement for the construction project. If you are a home owner who looks for signing a construction contract with your contractor, here are things to check and include.
What are the important things to include in your construction contract?
If you think what the important things to include in your construction contract are, this post is for you.
However, if you do not understand these terms, you should hire a legal advisor or a lawyer in order to prepare your construction contract.
Among the important clauses for construction contracts, you need to have a look at payment terms.
But any construction contract starts with mentioning the parties to the contract. Names and postal address of relevant parties to the contract together with location address of construction project is a must for any construction contract.
While date signed the construction agreement is important it is also necessary to include the project completion date and scope of work. If the project is involved with progress payments, it is necessary to deduct retention money. Therefore it is necessary to mention about retention money in your construction contract together with the percentage deducting each month.
The agreed sum of construction project and method of delivery is important to include. If there is any advance payment, how do you deal with any addition or omission work in future are other major clauses to include.
Other than above it is necessary to mention about work programme, indemnity and how to resolve any dispute in future while construction project is ongoing.
However if you are going to do any construction project, it is always necessary to prepare your construction contract with the advice of a legal professional. If you search on web, it is also easy to find sample construction contract agreement which you can edit and revise according to your requirements.
After all what necessary is to have a signed agreement that cover all the necessary terms for the construction which you are going to do.