A Good Construction Contract
A contract is a binding agreement which is legally enforceable. There are a lot of gray areas in construction projects, so a good contract is particularly important. Make sure your construction contract covers at least the following areas:
- It should be written on company letterhead.
- It should contain the company’s name, address and phone number.
- It should contain the consumer’s name, address (where the work is to be performed) and phone number.
- It should be dated the day it is written.
- It should include a detailed description of the work that is to be performed.
- It should provide a dollar amount associated with each task included in the project.
- It should include an estimated time line.
- It should provide a paymend schedule.
- It should clearly state whether permits will be pulled and who will be responsible for pulling them.
- Make sure there is a provision for all changes to the original contract to be in writing, and signed by both parties.
A contract is there to clarify communication between the parties and to protect both the consumer and the contractor from a misunderstanding. Take care to make sure the contract includes all the information necessary to make your project a good experience.
