Any construction project involves a significant amount of money. For this reason, the involved parties sign contracts to protect them from any malicious act. If about to start a construction project, here’s how to sign a contract for the project.
Check Contact Information
The contract should include the contact or identifying information for the client and the contractor. And this can include the business name of the contractor, email number, physical address, phone number, and all relevant terms. Also, the contract should consist of insurance information and license numbers.
The contract should have a project title reflecting the work scope. For instance, if it’s a bathroom renovation, it should describe what the contractor will do. And this can include tearing the current bathtub and vanity, removing the shower and floor tiles, and retiling the floor.
Project Completion Date and Timeline
Be clear about the duration the construction project will take. Ensure that the contract indicates when the project will commence, and the time you expect the contractor to complete it. Also, the agreement should state what will happen if the contractor fails to beat the deadline.
Payment Schedule and Cost Estimate
The payment schedule and cost estimate should be precise in the construction contract that you sign. Most contractors ask clients to pay a non-refundable deposit. Check this amount carefully before signing the contract because you shouldn’t pay everything upfront.
God Act Clause
A construction project can encounter problems that may hinder its timely completion. In that case, this clause explains how the client and the contractor will move forward. This clause can cover events like earthquakes and hurricanes.
Other things to check before signing a construction agreement include warranties and change order agreements. If you read the contract and don’t understand it wholly or partly, talk to your attorney. That’s because the contract becomes legally binding once both parties sign it.