Steps to ensure successful construction contracts

Residents of Boise and other nearby areas of Idaho may want to learn more about the ways to ensure that commercial construction goes as well as possible and construction contracts include all the fundamentals.

According to Construction Review Online, there are some basic areas that are part of construction contracts. These include the following:

  • Scope of work
  • Change orders
  • Compensation
  • Schedule

Insurance, warranties, indemnification, termination and dispute resolution may also be part of the contract.

The scope of the work

This includes drawings, standards and specifications. It also spells out the sharing of responsibilities. You do not want to encounter delays, which could increase the costs of the work as well as increase the possibility of disputes.

Change orders happen

There should be provisions for changes if they are a need. Plans do not sometimes go as people expect. Contracts should address any future changes if they arise. How will changes affect pricing? This should be a consideration in commercial construction law contracts as well.

A change order clause should include fully-agreed labor rates, equipment rental rates, allowable mark-ups on materials and subcontracts. Setting the rules before they occur prevents undesired contention.

Payment and more

Since contractors want to receive money for work, and project owners want to have value for their money, payment terms should have stipulations in a contract. Avoiding ambiguity, with clearly stated terms, will avoid future issues or problems. Will there be milestones? Definitions, such as “cost” should be part of the contract.

Timeliness and the schedule

Both of the parties should agree on the schedule and what will happen if there are delays. What if the project has been completed earlier than scheduled? Contracts should cover the project from the beginning to the end when completion becomes a reality.

It is important that contracts include certain features to ensure a successful project. After all, this is what the contractors, as well as the developers, want.