Construction Projects. Big money, bigger risk.
One of the more complicated industries where having an expert on your side truly matters.
Robust construction contract terms and conditions should cover a wide range of aspects to ensure all parties are protected and understand their responsibilities. Here are some of the most important items to consider:
Scope of Work: This should clearly define what the project is, what the contractor is expected to do, and how the work is to be completed. The scope should include specifications, drawings, and any other documents that describe the work.
Contract Price and Payment Terms: The contract should state the total price for the work, how the price was calculated, and when payments are due. It should also include any payment procedures and conditions for changes in the scope of work.
Changes and Variations: The contract should explain how changes to the scope of work will be handled, including how they will be priced and how they will affect the schedule.
Time of Completion: The contract should specify a timeline for when the work will be completed, including any milestones or phases.
Quality of Work and Materials: The contract should set out standards for the quality of work and materials. It may also specify warranties or guarantees.
Dispute Resolution: The contract should specify how disputes will be resolved, such as through mediation, arbitration, or litigation.
Termination: The contract should specify the conditions under which the contract can be terminated, and what the consequences of termination will be.
Insurance and Indemnity: The contract should detail what types of insurance are required, who is responsible for carrying them, and who will be responsible for any losses or damages that occur.
Compliance with Laws: The contract should state that the contractor is responsible for complying with all relevant laws and regulations, and for obtaining any necessary permits or licenses.
Force Majeure: The contract should define what constitutes a force majeure event, and what the procedures and consequences are if such an event occurs.
Remember, it's critical to consult with a Procurement Expert when drafting a construction contract to ensure it is legally sound and covers all necessary aspects.
