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Review construction contracts before signing them

A construction contract protects both parties, so it is imperative that each side looks at it to determine whether it offers the protections they need. There are several things that clients will look for when they are reviewing a construction contract prior to agreeing to work with a specific contractor.

At a minimum, the contract should have the information about what's being done and when. The cost and what the cost covers should also be in the contract. If the contractor offers a warranty, this should be included. It should also outline what exclusions exist for the warranty so that the client knows exactly what's covered and what isn't.

The contract will likely also include the payment terms. While most clients will abide by the payment terms, they should ensure that they can deal with the penalties or interest that's spelled out in the contract. There should also be a firm schedule for payments, especially if this is a large project.

Another thing that's fairly standard in these contracts is the dispute resolution method. Remember that this is how you will handle disagreements that can't be resolved in a one-on-one basis. Typically, these contracts will include an arbitration clause. This means that the dispute is kept out of court so the resolution method is limited.

Other terms might also be included in the construction contract. This is why it's imperative for both parties who are signing the contract to read it thoroughly. Having an attorney review the terms is a good idea just to ensure that the contract offers the protections that you feel are important.

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