When taking on a new construction project, it`s important to have a solid contract in place that outlines all the details and expectations for both parties involved. A construction contract acts as a legal agreement between the contractor and the client, ensuring that everyone is on the same page and that the project runs smoothly. Here`s a helpful checklist to ensure that your new construction contract covers all the important aspects.
1. Project scope and description
The contract should clearly outline the scope of the project, including the scope of work to be completed, the project timeline, and any specific requirements or expectations.
2. Payment terms
The contract should include details of how the payment process will work, including a breakdown of payments, payment schedules, and a clear explanation of any additional fees or charges.
3. Change orders
It`s important to include a section that outlines the process for change orders. This should include the procedures for authorizing, budgeting, and executing changes to the project scope.
4. Insurance
The contract should list all required insurance coverage for the project, including liability and worker`s compensation insurance. Additionally, it should outline who is responsible for providing and paying for the insurance.
5. Warranties and guarantees
The contract should clearly state any warranties or guarantees, including the scope and duration of the warranty. This should include both manufacturer and installation warranties.
6. Permits and approvals
The contract should state that all necessary permits and approvals will be obtained and paid for by the contractor. It should also outline any specific requirements for obtaining these permits.
7. Dispute resolution
The contract should outline the procedures for dispute resolution, including arbitration or mediation. Additionally, it should include a clause that outlines the jurisdiction and governing law for the contract.
Conclusion
A new construction contract is an essential document that protects both the contractor and the client. By ensuring that all the above points are clearly outlined in the contract, you`ll be setting yourself up for a successful construction project. Remember to always seek legal advice to draft an effective and binding construction contract.