Contrary to popular belief, constructing a building requires more than just a working knowledge of construction procedures. In fact, one will be required to consider both practical and legal factors when organising the ideal construction project. Whether you are hiring builders or are a builder providing your services, it is important that you have contracts put in place. Drawing up a construction project contract can be a challenging venture and one should always consult with an Albany lawyer for contracts to assist in this task. Below are some tips to successfully prepare an effective construction project contract.
Why do you need a Construction Contract?
The reason for this is so that all parties on the project team, private contractors, building companies and the project manager, have an understanding of what their roles and responsibilities are. It also provides clear documentation of the roles and responsibilities according to the business and contractor. The legal contracts will give protection to all parties with regards to legal matters. This article will provide information on the construction project contract and the elements that should be placed in the contract.
1. Construction Project Preparation
Studies have shown that the most effective construction projects are based on effective organizational project preparation. When drafting an organizational chart it is important to consider all individuals involved along with the aims of the project. By drawing up this chart one will be aware of what construction procedures are required, the responsibilities of the individuals, and the position of the different team members. It is an effective preparation mechanism as it outlines all aspects of the project in a clear and concise manner ensuring that everyone knows what needs to be done.
2. Including Outside Organisation Positions
In addition to the first-hand members of a construction team, one must also consider any outside organisations that may contribute to the project; for example, the third-party sub-contractors who could be construction services or providing particular resource materials. By including those on the organisational project plan one will have a clear understanding of their involvement in the project and what their responsibilities will be at what time.
3. Clear Description of Responsibilities
In some construction projects, some team members may be required to carry out multiple roles with additional responsibilities. By detailing this all parties will be certain of their obligations however, it is advised that the positions on the organisation chart are structured according to the role and not the individual. This means that all roles are detailed individually instead of all obligations being placed under one individual’s name.
4. Clearly State Remuneration Stages and Penalties
For larger projects payment is usually made after the completion of agreed stages. Often there will be penalty payments due if one party does not meet their contractual obligations. This will vary from one project to another so the agreement must be reasonable and achievable for the various contracting parties. It is no use expecting the roofing contractor to complete their work if the framing contractors have not finished their job. Therefore, the penalty clauses should be in accordance with the appropriate time-scale. This single aspect is extremely complicated and clearly could be expensive to one party if it is not a well drafted contract. Therefore you are strongly recommended to consult an Albany lawyer for contracts for building projects.
5. Consider Restrictions
The final factor to consider when drawing up a construction project contract is the restrictions team members may face. It is important to outline the limitations of roles to ensure that all individuals do not overstep any boundaries.
Final Thoughts on Construction Project Contracts
As can be seen, there are numerous factors to consider when drafting a construction project contract. By using the information above, and obtaining professional legal assistance such as an Albany lawyer for contracts, one will find the task less complicated and daunting and protecting your interests too.