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What should you look for before signing a construction contract?

When it comes to the drafting of construction contracts, there are some non-negotiables that they're expected to cover. They should clearly spell out the cost for the work as well as the terms and conditions surrounding how that amount should be paid. A particularly well-written contract should include other details, such as what happens if one of both parties don't uphold the stated deadlines or don't adhere to its terms.

There are two primary reasons that individuals enter into construction contracts with one another: to lock in a price and a time frame that the work is to be completed within.

If you're planning to enter into a construction contract to have work done either on your home or commercial building, then you'll want to ask about any additional fees or costs that you may incur by soliciting a contractor to do work for you. This will keep you from being blindsided when you ultimately do sign a contract.

Before you sign that contract, it's very important that you pay close attention to the price listed in it. You'll want to make sure that no added charges are imposed beyond what you've previously discussed.

It's also important for you to pay close attention to the terms of payment listed, such as whether you're being asked to pay in installments or in a lump sum. You'll want to make sure you're comfortable with penalties that are assessed for late payments as well.

As for time frame, you'll want to make sure that timelines established to get things done are reasonable and that circumstances that may warrant penalties being assessed for delays are detailed.

Construction contracts should also clearly spell out how disputes will be handled, whether by arbitration, in the courtroom or by some other method. It should detail who is responsible for legal fees incurred in such cases also.

If you're considering signing a contract to have work completed on either your home or business, then you may benefit from having a Melbourne construction litigation attorney review it to ensure it protects you and your rights.

Source: FindLaw, "Ten things to think about before signing a construction contract," accessed May 30, 2018

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