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4 Tips to review in a construction contract

In order to make your construction project a success, you have to make a clear and complete contract. A well-constructed construction contract will guide everyone involved in order to make sure that nothing goes wrong during the construction phase. It will keep things in motion, so the building would be completed with no problems or delays.

Also, good contracts keep potential contract disasters away. This could be in the form of contract breaches, sudden variations, building defects, and even late payment.

So, it becomes important to double-check each part of the construction contract before signing it. You would need to review each part closely because it may become a root cause for any possible building or contract dispute.

Its important to check and review every part of the following in a construction contract

Contract clauses

Read and understand each contract clause and how it will affect your respective work in the construction project. Each clause states the terms and obligations that you need to observe while doing construction work.

It is important that you can look over each clause and check if each one is stated as clearly as possible. You must also be sure to agree and be ready to comply with what has been set in the contract.

It is always better to watch out for possible loopholes in these clauses because some of them might become good to be true. Remember, your client might rip you off if you are not careful enough in reviewing your contracts.

Amendments and special conditions

Reviewing your contract does not stop with terms and obligations. You also become wary of amendments and special conditions. These are the additional things that you should remember while being involved in the construction project.

While a construction contract should follow the respective construction laws, amendments and special conditions make room for any specification that is unique to the building project that is both agreed by all parties involved. It is still an important thing worth checking since it is a section that is usually overlooked by parties involved in the construction project.

There should also be also a review if clear terms in making additional amendments and other variations are in place, in order to avoid misunderstandings when there is a need to make them.

Supporting documents

It is also important to exercise due diligence in checking out the support documents your client will provide in the construction project. Check if the plans, drawings, technical specifications, certifications, permits and other necessary documents are complete before going into a contract.

Checking these out before construction starts will allow you to see if your client is trustworthy and if the plans are foolproof. You even get to check if building defects could arise from the plans because it was not done with skill. If you see the potential problems early on, it could be still fixed or it gives you the opportunity to bail out.

Your legal rights

Most importantly, reviewing your contract enables you to enforce your legal rights on a building contract. Relevant building laws protect you from different things such as getting paid late for your hard work and with transacting with dodgy builders. One bad contract clause can affect your work progress and lead you to a violation of the law so it is crucial to review your contract.

If understanding a contract seems intimidating. A construction contract review lawyer can help you understand the key points, your rights, and obligations present in your contract.

4 Tips to review in a construction contract
John Dela Cruz is the Principal Lawyer of Contracts Specialist. As a construction lawyer based in Sydney, he gives legal assistance to both builders and contractors on making their Payment Claims and Payment Schedules.


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