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3 tips for creating a construction contract that works for you

On Behalf of | Dec 26, 2022 | Construction Law |

Almost all jobs in the construction industry begin with an estimate for the work to be done. The client then decides if they will hire you or another contractor. If you are hired, you should have a contract ready for your client to sign. 

The purpose of a construction contract is to protect both parties from possible issues. You must include specific terms and conditions to protect your business if the client tries to claim you did not meet your 

1. Include information about both parties

You must identify both parties in the contract and the project or work being done. Include as much information as possible so the client won’t return later, claiming you did not do what you said you would. 

2. Set clear payment expectations

Include the payment schedule and expectations in the contract. Include when the first deposit should be paid and all subsequent payments. Include deadlines in the contract is crucial to use the document if your client fails to pay as stated in the signed contract. 

3. Include dispute resolution methods

Litigation is costly, which is why you should take steps to avoid it. To do this, include resolution methods in the contract. Consider alternative dispute resolution like mediation, which can help prevent costly litigation. Also, be sure all the resolution methods are included in the contract so you can enforce these if an issue arises. 

Creating an effective construction contract

Creating a contract with the above information will help you protect yourself and your business. Be sure to have the contract signed before any work is done. Include the terms as discussed to avoid potentially expensive litigation related to the project