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What to Look for Before Signing a Construction Contract
People usually overlook a construction contract as the language is intimidating and it is often lengthy.
You must review:
Scope of work in the project
Scope of work is a general term often used to describe the amount of work required for the project and it will differ for every individual involved in the project. So, make sure your contract has a clear explanation of the services that need to be provided. Along with that, it must also specify quality, schedule, material, and any special task that may be relevant to that particular project.
Cost and payment terms
In a contract, the payment terms should be mentioned clearly and simply. There should not be any uncertain terms for the cost of materials, labor costs, and other services related to construction. A detail about the schedule for payments along with the amount should be specified in detail. You must also read the terms and conditions for payment before signing the contract.
Time frame for the project
The property owner always has a tight schedule in mind. However, while reviewing the project contract make sure that the mentioned time frame is achievable. The contract should mention the start date of the project, the proceed time, and the date of completion. See to it that provisions for delays should are also considered in the project schedule.
Rules and regulations
The construction industry of a particular area has certain rules. You may or may not be aware of such rules. So, before signing the contract if there is any clause that is unclear to you, make sure to learn about that industry procedure before finalizing the agreement.
Clause for dispute resolution
Whether the construction project is big or small, conflict is common between the stakeholders. The contract must have a provision for those disputes. You may also see to it that there must be a clause to terminate the contract if somebody breaches its terms.
Before you enter into any contract, you must have a clear idea about what you want to achieve from it. You should understand the risks, opportunities, and the legal bindings that apply to your project.
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