4 Items to Check in your Construction Contract
It is always exciting to know if a certain client has decided to accept your quote for their project. But
before sealing the deal for a new construction project, it is important to double check and review your
contract.
A good contract can lead to the project’s eventual success, and you get to avoid further building or
contract disputes. All it takes is for you to understand what your contract says. Also, make sure that it
follows the relevant construction laws that apply to your project.
But to help you review your constructed contract, you may need advice from a construction lawyer. He
can help you understand the key points in your contract, and give you pointers to improve it. Then, you
can talk through it with your client to create and sign your improved construction contract.
A construction lawyer can help you examine each part of your contact such as:
Terms
This refers to the provision in the contract. Terms can be based on common law, or on what relevant
construction laws are prescribing. It must be clear and complete, as these are your basis for your scope
of work during the construction phase.
This serves as a description of what your building project is, and what are things that should be done. It
can be a guide that you can look over if you think that a dispute may possibly happen during construction.
Obligations
Obligations are your duties as a contractor in relation to the terms in the contract. These are the things
that you would be responsible for in case you mess up during construction. This includes the work you
need to do and the time frames that you need to remember.
Knowing your obligations will help you manage your work and the time where you know that you can
get paid. It will also help keep track of any contract variations such as additional or less work for you.
Amendments
Amendments refer to any additional things in your contract. It could be plans, drawings, technical
specifications, and any other supporting documents that you may need for the project. Make sure to
keep it organized and complete to avoid any problems in the future.
Also, do not forget to comply with any government mandated requirements such as licences, permits
and certifications. Make sure also to also include insurance and warranties, especially if the law
requires it.
Special Conditions
Special Conditions are the contract terms that do not fit in the general terms and obligations in the
contract. Since these are only unique to the contract, you and the other contracting parties must
wholeheartedly agree on these conditions. Else, a dispute might happen.
Constant communication is the key to creating good special conditions. If all parties are on the same
page, it can result in a harmonious working relationship and a successful building project.
If you look deeper in each part of the contract, then you can prevent any construction dispute from
happening. Failing to do so may lead to a legal dispute, which could be time and money-consuming to
experience.
It is always better to seek help from a construction lawyer to help you double-check and review your construction contracts.
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About the author
John Dela Cruz is the Principal Lawyer of Contracts Specialist Solicitors and Attorneys. As a
construction lawyer based in Sydney, he gives expert legal advice to contractors and other tradesmen
on how they can make good construction contracts.