When it comes to construction projects, having a solid contract in place is crucial for protecting your interests and ensuring that the project is completed on time and within budget. However, not all contracts are created equal, and there are several key things to look out for when reviewing a construction contract. Here’s what you need to know.
Scope of Work
The scope of work is one of the most important aspects of any construction contract. This section should clearly outline all of the work that will be performed, as well as any exclusions or limitations. Make sure that all work you expect to be done is clearly listed, including any small details that might be overlooked. Additionally, make sure you understand what work is not included in the scope, so you know what to expect from the contractor.
Timeline
The timeline section should outline the start and end dates of the project, as well as any key milestones or deadlines along the way. Be sure that the timeline is realistic and achievable, and make sure that the contract includes a penalty clause if the contractor falls behind schedule.
Payment Terms
The payment terms should clearly outline the cost of the project, as well as the payment schedule. Make sure that you understand when payments are due, and what happens if payments are not made on time. Additionally, be sure that you understand all of the costs associated with the project, including any hidden fees or charges.
Warranties
Warranties are an important aspect of any construction project, and should be clearly spelled out in the contract. Make sure you understand what is covered under the warranty, how long the warranty lasts, and what steps you need to take if there is an issue with the work.
Change Orders
Change orders can have a significant impact on the cost and timeline of a construction project. Make sure that the contract clearly outlines the process for requesting and approving change orders, and that all change orders are properly documented and approved.
Insurance and Liability
Finally, make sure that the contract includes provisions for insurance and liability. The contractor should provide proof of insurance, and the contract should clearly outline the types of insurance required. Additionally, the contract should clearly spell out who is responsible for what in the event of an accident or other issue on the job site.
In conclusion, reviewing a construction contract carefully is essential for ensuring that your interests are protected throughout the project. By paying close attention to the scope of work, timeline, payment terms, warranties, change orders, and insurance and liability provisions, you can ensure that your construction project runs smoothly from start to finish.
