When you’re preparing to work with a construction team, the most important thing to do is to make sure you have a well-drafted construction contract. A well-prepared contract is legally binding and protects you against damages that any construction team could cause to your property.
Before you sign off on any contract, there are a few things you should make sure are included. These items include:
- The time frame with which the team has to complete the project
- The pricing of the project
- How you’ll pay for the project
- How much you pay in penalties if you are late with payment
- Rules for industry procedures
- Arbitration clauses
- Material terms to discuss goods and services and how they’ll be rendered
- Attorney’s fees, if legal aid is needed
- Anticipated issues or problems that you can set terms of agreement for
Some of the most important parts of a contract include the arbitration agreement, which makes it possible for you to go through arbitration instead of court when there is a legal problem, the time frame to complete the project and the overall pricing of the project.
It’s also a good idea to include terms that allow you to back out of the contract before construction begins if you and the construction team can’t agree on the other terms of the contract. You don’t want to be locked into an arrangement that isn’t satisfactory, so adding a clause that allows you or the other team to back out is a good idea for everyone involved. Your attorney can look over your contract to make sure it’s sound and protecting your interests.