Have you tried hiring a general contractor for your home renovation project? Did you like how they work? Have they accomplished their work in time and met the agreed design? Are you having problems with the payment schedules? How about the warranty of the project? More importantly, have you created an agreement called General Contractor Contract?
In every project nowadays, always look for the written general contractor agreement to ensure everything is in line with the documents and protects your best interests. This must be clearly explained to you by the general contractor you’re working with.
In this article, we will tackle all about General Contractor Contract, its importance, and the things included in the agreement. This is created by one of the best major remodelers in Port St. Lucie, Florida.
What is a General Contractor Contract?
As we have mentioned, a general contractor should provide a contract for the homeowner. A general contractor contract is a legal agreement between the business owner as the contractor and the client as the homeowner. This contract is an agreement for the project, specific terms needed to follow from the start of the project until it completes and beyond.
This agreement establishes things for both parties that will also benefit the two. Specifically, their responsibilities, rights, boundaries or limitations, payment schedules, safety, etc. The contract should also specify how disputes in the contraction are resolved. This may either be through mediation or arbitration.
Importance of General Construction Contract
There are many things that can happen in the construction project that can result in a problem. This can be a controllable problem, but the worst case is the uncontrollable one. But these problems can be avoided if the construction project is managed properly.
An example of a case that can lead to a problem is sometimes clients change their minds multiple times throughout the job. If the agreement regarding the redesigning request of the client is not declared in the contract, the time will come for disputes to arise between the client and the contractor. Another example is regarding the payment. Sometimes, an unexpected event may occur that can be the reason for the delayed or missed payment. If this is not appropriately settled within the contract, the project may lead to an unfinished one.
A construction contract may not answer all the arising issues in the project, but still, it is necessary to create boundaries and accountability for the parties involved in the job. This construction contract agreement will be your base reference if something occurs, especially when conducting legal proceedings.
Common Terms Included in Construction Contract
Below are the standard terms you should check or declare in the general construction contract agreement. As a homeowner, you have the right to somehow revise the topics in the contract depending on the parties’ final agreement.
Ø Contact Information
In every construction contract, the contractor’s legal name should be seen in the document. This should be along with their contact details like phone number, email address, company address, and other essential information to make it easier for the client to make contact.
Ø Title, Description, and Scope of the Project
The contract should include the project title and declare the work’s scope and limitations. This is important so that the budget and time align with the agreed completion date. Also, the project description should be outlined to any permits or required licenses to complete the project successfully.
Ø Timeline for the Completion of the Work
A construction project should be clear on how long we expect to complete the work. Both parties will agree upon the date the contract would take effect, the project start date, and the project’s estimated completion date. Also, it should be declared in the agreement what happens if things will not go as planned and can’t complete the work as projected.
Ø Cost Estimate and Payment Schedule
Payment is one of the essential matters in the construction project and is outlined in the agreement. Some payment begins with a 50% down payment and another 50% in the middle of the completion of the project. Others prefer to have selected intervals of payment throughout the project. Any type of payment should be declared in the contract from the first installment to the final cost.
Ø Overview of Insurance Policies
During the operation on the construction site, many events may arise, some of which are hazardous. A reputable contractor should have an insurance policy to cover claims for potential personal injuries caused to other people during on-site operations. This must be declared in the contract for the learning of the client.
Ø Change Order Agreement
This is common for the client as they see the project’s development. The client may decide or request to change the design or expand the project’s scope. A change order agreement allows for either party to deviate, modify or make an addition to the original contract as long as both parties sign it.
After completing the project, clients always want to ensure the integrity of the project. If an issue occurs with the quality of the project, it should be declared in the contract that the contractor will take responsibility for fixing it. The warranty gives the client guarantees that the project will last for a long time.
Summing it Up
Construction contracts help the construction company and the clients on the same page before starting the construction project. This will helps to protect both parties in times of disputes, disagreements, or any other issues that will occur throughout the project.
At SIMCORP Construction & Remodeling, we provide general contractor contracts and encourage clients to ask continually for clarity. We are more than happy to answer and give detailed information about any construction aspect. To conclude, contractor agreements should be perfectly defined and accurate to meet both specifics before the project begins.
We serve Port St. Lucie, Fort Pierce, Stuart, and surrounding areas.
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