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Construction Basics: What You Should Include in Your Contract

construction contract basics | Fryer and Hansen | McAllen Lawyers

Those in the construction business know the excitement that comes with landing a new contract, especially if it’s a great client with an interesting project. It’s easy to sometimes overlook essential clauses and outlines, but a contract will not only protect you, it will also ensure that work gets done.

Some clients get very enthusiastic about projects and it can end up feeling like a straightforward job, but ensuring that your contract is in top shape will protect you and your client from costly misunderstandings down the road. Follow the steps below to help you move forward during the construction process effectively and efficiently.

Call or visit our construction lawyers at Fryer & Hansen, PLLC today for help with your contract!

The Project

The title of the project should be descriptive, and be sure to clearly indicate what it is you’re being hired to do. Make sure to include the names, start and end dates, and each party’s address and work location. Including a disclaimer of variables that might prevent the job from being completed should also be considered. This information will be crucial should you ever need to present it in a court.

One of the most important components of the contract is where you detail all of the work you’ve been hired to do. Once the draft of the contract has been made, it’s important to give the other parties involved a copy for review or edits. This is crucial so that everyone involved is on the same page regarding what is to be completed and having the same goal in mind.

Payment Schedules and Cost Estimates

In the contract outline, make sure to include the total cost of the project the other party has agreed to based on the original cost estimate. The payment schedule should include the dates of when a payment is to be made (especially if payments will go through when certain milestones of the project are meet) and the cost of materials, among other things. You’ll also want to include either a clause or a line pertaining to late payments. Consider a reasonable interest for your line of work when including these clauses.

The Materials

This is where you outline all of the materials that will be needed to complete the job and clarifying who will be making the purchases for them. You can include the cost of estimate for the items you are providing and how they will be incorporated into your overall quote.

Insurance and Credential Information

All parties will be reassured by your professionalism when they see your accreditation(s) or license(s) that qualify you for the project. Make sure to include your business insurance policy that will protect you, your workers and even your client should someone be injured on the job.

Additional Costs

As with every construction project, there will be times when work will arise that is not part of your client’s requests, so be sure to include a possibility of this occurring in the future in your contract. These unforeseen complications could cause a delay and it’s best to prepare and bring them up. Make sure to include in your contract that new layers of work could arise and that new pricing quotes will be issued should this happen.

Including a Warranty

Every construction contract should include warranties. Some are implied by state law while others are written into contracts. As a professional, you should feel confident behind your work, and most contracts include a clause stating that the labor is protected for at least one year. This means that if any problems or repairs are needed, the parties involved will return to address the issue.

Handling All of Your Contract Needs

We know drafting up construction contracts can seem overwhelming, and sometimes they are. Leave the guesswork to us. We’ll make sure your contract states exactly the terms that will protect you in a court should you need to. Call or visit us today with all of your construction contract questions!

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