A well-drafted construction contract details out the work being contracted, the price and expected payment deadline, and the terms and conditions of payment. The agreement should also address various potential risks.
There are times when you might be asking yourself whether or not you should sign the document in front of you, especially if it’s related to construction. Kassel Construction is here to help – let’s explore the five most important things to know before you sign a contract with a construction company.
1. Time Frame
All agreements should have a time frame for future transactions. Make sure that all of the timing included within the contract fits your schedule and seems reasonable and doable. Regardless of your role in the construction contract, you need to make sure there is little to no room for timing mistakes or misunderstandings that could end up being costly.
The agreement should clearly state prices. Be wary of additional charges that you have not discussed with the other party — make sure you know what the additional fees are before signing anything.
3. Payment Method
When determining the terms of payment, ask yourself if it is appropriate for your financial situation. Additionally, establish whether there are payment penalties for being late and if they are reasonable.
4. Resolution of Anticipated Disputes
No matter how careful you are or how good your relationship with the other party is, a dispute may arise. Many contracts include an arbitration clause, which means that a dispute must be settled in arbitration as opposed to in court. Arbitration is generally less costly and less formal than court, but if you sign the contract with the clause intact, you are likely waiving your right to take the matter to court.
5. Transaction Rules for the Industry
Particular industries have rules by which transactions are governed. Make sure that your contract follows the norm with the construction industry procedure.
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Our residential and commercial construction contractors are here to take on your new home construction and commercial building projects, as well as renovation and remodeling projects. We embody the highest level craftsmanship and building safety while remaining within budget and time limitations. Call us today at (561) 221-2683, or visit our website for more information.