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Key elements of a construction contract

| Feb 4, 2020 | Construction |

In any type of new construction project, whether it is building a residence or commercial property, contracts will provide the bedrock framework for how the project will proceed. When Florida residents are contemplating engaging a builder to construct a home, retail location or office building, there are some key elements that will need to be included in the construction contract.

For starters, timing can be everything in a construction project. With a new home, for example, the buyer will need to know when to expect the project to be completed. The same goes for commercial property. A date certain should be the goal in a construction contract and, if the builder does not finish in time, there may be penalties involved.

Next, the price that is quoted by the builder should be the price that is included in the construction contract. A buyer should not see a price that fluctuates based on delays or trouble getting materials, for example. If the builder quotes a price, that price should be firmly agreed to in the construction contract.

However, there is always the potential that a construction project will run into problems. As a result, most construction contracts will include terms for how disputes will be addressed. In some cases, agreeing in the contract that the parties will arbitrate problems, instead of going straight to litigation, can be typical elements of the construction contract. Whatever the project, Florida residents should be sure to review potential construction contracts carefully because these legal documents are binding.

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