Law

Dos and Don’ts of Drafting a Construction Contract

Construction contracts are needed for every construction project. However, not just any contact will do. It needs to be in-depth, which also means it could be complex.

Since construction contracts can be so complicated, it’s important to follow the dos and don’ts when it comes to making a construction contract for a less stressful process.

Drafting Contracts

Prevent running into legal issues by drafting a thorough contract. This might seem like a daunting task but it is necessary and well worth the work.

When drafting a contract, always include essential terms and pay attention closely to these terms by really including everything in great detail in your next contract.

Helpful Tip: Work with an attorney who knows Phoenix construction law to ensure you have your ducks correctly in a row!

Clear Identification of Parties Involved

One term that should always be included in a contract is the clear identification of parties involved.

This means include all parties who are involved in the construction project and also include what they are responsible for.

Every party needs to be included and the role of each person needs to be clearly defined. This includes contractors, subcontractors, and suppliers.

Schedules

A timeline and schedule is another term that needs to be clearly defined. Also, include what should happen if you do run into delays. Proper language is to be used while also planning for delays and holding parties accountable for failure to keep to the timeline.

Unexpected Delays

Unfortunately, things will pop-up out of your control, from mother nature to even the current pandemic. It is better to be safe than sorry and include these events in your contract and what to do if they cause delays.

Payment

One of the most important terms in a construction contract is including a clear understanding of payments, due dates, the form of payments, and consequences of failure to pay. Make sure to always cover all of your payment basis.