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The 3 Important Elements of Construction Contract

Important Elements of Construction ContractsWhether you are building on a property for personal or business reasons, it is important to understand the important elements of a construction contract. By doing so, you can avoid potential misunderstandings or any confusion that may lead to a lawsuit.[1] Before you sign on the dotted line, make sure your contract contains these three elements:

1. The Correct Names, Addresses, and Signatures of Both Parties

Simply put, if the contract is not filled out correctly with these basic items, it will not be a legally binding contract that will hold up in court. Contact J. Muir & Associates to make sure that all of your documents are drafted properly or reviewed thoroughly.

Before you sign, verify that your name and address are correct. Also, double check that the name of your contractor and their address are complete. Note that just because you’ve signed the documents, it doesn’t necessarily mean that work is ready to start right away. Before any work begins, you need to ensure that your contractor has also understood and signed the contract.

2. Specify what is to be done, where, and when

Make sure to list the address(es) where the construction is to be done, and specify what exactly is to be done. For example, if you’re doing a bathroom remodel, you should specify which bathroom and where it is located in your house. This is also the place to note your quality expectations.

If you are confused or unclear about verbiage like “built to code,” ask questions if you’re unsure.[2] Also, if there are items that you want to specifically choose for your construction project, be sure to list them. This way, everyone is clear about what is expected.

Spell out the timeline listed in the contract. Make sure that you agree with the listed start date and end date and any other important dates throughout the project.

3. The cost of the project and the terms of payment

Before construction gets underway, you and the contractor need to clearly understand when money will be paid and under what terms. It is very common for installments to be paid throughout the process in conjunction with the completion of milestones. Clearly explain the milestones and the amount of money to be paid following the completion of each one.

Get Help from a Professional

These three items are really just the tip of the iceberg. You will also want to include information regarding liability, insurance, and a satisfaction guarantee.

Drafting and understanding construction contracts should be left to the professionals. To ensure that your Florida construction contract is as thorough and enforceable as possible, consult with the legal professionals at J. Muir & Associates. Because their primary focus is Florida business law, they can ensure that your construction contract is the most polished version it can be. Give J. Muir & Associates a call today at (786) 533-1100.

 

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