Construction Contracts
Though construction contracts may at first glance seem like a daunting and confusing mess of legal jargon, they can actually be quite straightforward if you take the time to read them thoroughly. Sometimes these documents are so long-winded that it’s difficult for people who aren’t trained in contract law to simply read through everything without getting overwhelmed with details. As every reputable business person knows: Reading is fundamental when signing any kind of agreement because there could always be something else tucked away inside those small print pages which might surprise us later on and can cost plenty more money.
A. Check the Essential Terms
What are essential terms?
There are a number of essential terms that must be agreed upon in order for any construction contract to be valid. These include project deadlines and scope of work. So if you don’t agree with your contractor on these issues, then there will never be an agreement between you two, because without this basic premise nothing can happen – meaning no work gets done or begun.
B. Check the Important Clauses
What are the Important Clauses?
Important clauses to look out for include those that are related to Time, Cost, and Build Quality.
In addition to the payment schedule, one must consider how that payment will be made. There are many different options for this, including lump sum or cost plus.
Before you sign your contract, it’s important to be aware of what will happen should there be any issues with the other party.
Clauses on termination and breach should also exist, and a specific procedure on how these situations can be resolved and where.
Pay special attention to the following:
- Building Period
- Progress Payments
- Variations Clause
- Defects and Rectification Clause
- Termination Clause
- Dispute Resolution Clause
C. Exercise Caution; Check the Liability Clauses
Most standard form contracts are typically written to favor the builder, so you need to be wary of clauses that completely pass the liability and burden on to you.
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How We Can Help
Of course, it’s always a good idea to engage a professional to review your contract, to make sure you’ve got all bases covered. It is an investment that will help you minimise your risks to time, cost, and build quality.
Construction Lawyer Brisbane has been practicing Construction Law for more than a decade now, and has a team of experts whose niche specialisation is Construction Contract Review and Advice.
Should you need assistance with your construction contract, feel free to give us a call. First consult is free.
