How To Read A Construction Contract
- Construction contract Home construction projects usually require signed contracts. A construction contract will not...
- Comprehending construction contracts Without legal knowledge, reading your first construction contract can be a...
- Prices and hidden fees The first thing that most people check for is the price. There is...
- Completion dates
Full Answer
What is a construction contract?
What Is a Construction Contract? A construction contract is an agreement between a client that wants construction done and a general contractor. This type of contract details the contractor's scope of work, including their right to subcontract any of the work, how and what they will charge for the work, and any applicable plans or work orders.
What should I look for in a construction contract?
Contracts may include a construction schedule or dates for the project as part of the contract language. If a schedule is included, review the dates for your work carefully. Make sure you have been given enough time to get submittal approval, order materials or equipment, and have them delivered before you start work.
How to read construction plans?
When learning how to read construction plans, it is essential to understand what is contained within typical construction plans. Most include a cover page, time block, key notes, general notes, revision block, drawing scale and a legend. It is crucial that you read everything and understand it before you estimate or start the construction project!
Why is it important to review construction contract documents early?
Since project completion depends on everyone completing their work on time, it’s especially important to review and discover any schedule changes as early as possible. The contract documents, like drawings and specifications, are often referenced in construction contracts as the basis for the scope of work.
What should I look for in a construction contract?
Elements of a Construction ContractName of contractor and contact information. ... Name of homeowner and contact information. ... Describe property in legal terms. ... List attachments to the contract. ... The cost. ... Failure of homeowner to obtain financing. ... Description of the work and the completion date. ... Right to stop the project.More items...•
What are the four basic types of construction contracts?
4 Types of Construction ContractsLump-Sum Contracts.Cost-Plus-Fee Contracts.Guaranteed Maximum Price Contracts.Unit-Price Contracts.
What are the 5 components of the contract documents?
Standard Contract ElementsDOCUMENT TITLE. The title should briefly state the overall purpose of the document. ... UNIQUE NUMBER AND DATE OF AGREEMENT. A number used to identify that particular document. ... IDENTIFICATION OF THE PARTIES. ... RECITTALS.THE AGREEMENT.TERM OF CONTRACT.DEFAULT AND REMEDIES.COMPLIANCE WITH LAWS.More items...
What is the order of precedence for construction documents?
5 ORDER OF PRECEDENCE In case of any inconsistency, conflict, or ambiguity among the Contract Documents, the documents shall govern in the following order: (a) Change Orders and written amendments to this Agreement; (b) this Agreement; (c) subject to subsection 14.2.
What are the 5 basic types of contracts?
Other contract types include incentive contracts, time-and-materials, labor-hour contracts, indefinite-delivery contracts, and letter contracts.
What are the 3 types of contracts?
The three most common contract types include:Fixed-price contracts.Cost-plus contracts.Time and materials contracts.
What are the key components of a construction contract?
Five Essential Elements of a Construction ContractFull Name, Address, and Signatures of Both Parties. Though this may sound obvious, this commonly overlooked element of construction contracts is required to make the contract legally binding. ... Scope of Work. ... Project Cost and Payment Terms. ... Schedule of Work. ... Authority.
What all is included in construction documents?
Here are some of the most important construction documents for commercial projects:Bidding Documents. ... Construction Contractor Agreement. ... Architectural Drawings. ... Specifications. ... Bill of Quantities. ... Schedule. ... Work Orders. ... Subcontractor Application.More items...
What information should a contract document contains?
Contract document include sufficient information to be able to complete the work or service....Contract Drawings and Specifications. ... Priced Bill of Quantities. ... Construction Programme. ... Project Quality Management Plan. ... Project Health and Safety Plan. ... Conditions of Contract. ... Risk Insurance.
Do drawings or specifications take precedence?
Supplement 5252.236-9312, Design Build Contract-Order of Precedence, which showed that specifications took precedence over concept drawings. General requirements, which stated “in case of differences between project specifications and the accompanying drawings, the specifications will govern.”
What is contract priority?
One way of safeguarding against the danger of an unresolvable argument is by including a priority of documents clause. This is a clause that lists the contract documents in order of precedence. In the case of any inconsistency or ambiguity, the document that is higher on the list carries the day.
Which takes precedence in a contract?
In the event of any conflict or inconsistency among the following documents, the order of precedence will be: (1) the applicable Service Order, (2) any exhibit, schedule or addendum to this Agreement, and (3) the body of this Agreement.
What are the various types of construction contracts?
The eight types of construction contracts include:cost-plus construction contract.design and build contract.guaranteed maximum price contract.incentive construction contract.integrated project delivery contract.lump-sum contract.time and materials contract.unit price contract.
How many types of construction contracts are there?
There are three main types of construction contract, identified according to the mechanism for calculating the sum due to be paid by the employer: lump sum contracts, re-measurement contracts and cost-reimbursable contracts.
What is the most common type of construction contract?
Fixed price construction contractsFixed price construction contracts, also commonly referred to as “lump sum” or “stipulated sum” contracts, are the most common types of construction contracts. As its name suggests, under a fixed price contract a contractor agrees to construct a project for a “fixed” or agreed upon price.
What are the 6 types of contracts?
Generally, where it is proven that an agreement was made, the agreement will be deemed as a legally binding contract if the six elements to a contract are present. The six elements are Offer, Acceptance, Consideration, Intention, Capacity, and Legality.