Terms and Conditions
Terms and Conditions
The terms and conditions of construction are the legally binding agreements between the owner of a construction project and the contractor. These terms and conditions should be clearly defined in a written contract before any work begins.
The following are some of the most important terms and conditions of construction:
Scope of work: This section should clearly define the work that the contractor is responsible for completing. It should include a detailed description of the project, including the materials to be used, the workmanship required, and the timeline for completion.
Contract price: This section should specify the total price of the project, as well as the payment terms. It is important to note that the contract price may be subject to change if there are unforeseen changes to the scope of work. Insurance: The contractor should be required to carry adequate insurance coverage to protect the owner against liability in the event of an accident or injury on the job site. Warranties: The contractor should provide warranties for the workmanship and materials used in the project. These warranties should be clearly defined in the contract.
Dispute resolution: The contract should include a dispute resolution clause that outlines how any disagreements between the owner and contractor will be resolved. In addition to these general terms and conditions, there are a number of other specific terms that may be included in a construction contract, depending on the nature of the project. For example, the contract may include provisions for:
Change orders: Change orders are written instructions from the owner to the contractor to make changes to the scope of work. Change orders can affect the contract price and timeline, so it is important to have a clear process in place for managing them.
Delays: The contract should specify how delays to the project will be handled. This may include provisions for extending the timeline or adjusting the contract price. Termination: The contract should specify how either party can terminate the contract, as well as the consequences of termination.
It is important to have a lawyer review any construction contract before you sign it. This will help to ensure that you understand all of the terms and conditions and that your interests are protected.
Here are some additional tips for negotiating construction terms and conditions:
Be specific in your scope of work. The more detailed the scope of work, the less likely there will be disagreements later on.
Get everything in writing. This includes the scope of work, the contract price, the payment terms, and any other agreements between you and the contractor.
Be clear about your expectations. Make sure that the contractor understands your expectations for the quality of workmanship, the timeline for the project, and your budget.
Get multiple bids. This will help you to compare prices and services from different contractors.
Negotiate change orders carefully. Change orders can have a significant impact on the contract price and timeline, so it is important to negotiate them carefully before agreeing to any changes.