Understanding Your Construction Contract Archives - Wyman Legal Solutions

Understanding Your Construction Contract

When embarking on a home renovation or construction project, your contract is your most important tool for ensuring everything goes smoothly. In this blog post, we’ll delve into the key clauses you should look for in your construction contract to protect your interests and ensure a successful project. Whether you’re a homeowner or a contractor, understanding these clauses can make a significant difference in the outcome of your project.

  1. Scope of Work: The scope of work clause is fundamental in any construction contract. It clearly defines the work to be performed, including detailed descriptions of tasks, materials, and any exclusions. This clause ensures that both parties have a mutual understanding of the project’s scope, preventing any misunderstandings or disputes down the line. Ensure that the scope of work is detailed and specific to avoid any ambiguity.
  2. Payment Schedule: A well-defined payment schedule is crucial for managing cash flow and ensuring that payments are made at appropriate stages of the project. The payment schedule should outline the terms of payment, including the amount and timing of payments. It’s advisable to avoid large upfront payments and instead tie payments to project milestones. This approach ensures that payments are made as work progresses and milestones are achieved.
  3. Timeline: The timeline clause specifies the start and completion dates of the project, as well as deadlines for each phase of the project. This clause is essential for keeping the project on track and ensuring that both parties adhere to the agreed schedule. A clear timeline helps in managing expectations and coordinating the various aspects of the construction process.
  4. Change Orders: Construction projects often encounter changes in scope, whether due to unforeseen circumstances or evolving requirements. The change orders clause details the process for handling changes to the project scope, including how additional costs and time will be managed. This clause should outline the procedure for submitting and approving change orders, ensuring that any modifications are documented and agreed upon by both parties.
  5. Dispute Resolution: Disputes can arise in any construction project, making a dispute resolution clause essential. This clause specifies how disputes will be resolved, such as through mediation or arbitration, rather than litigation. Mediation and arbitration are often quicker and less expensive than going to court, providing a more efficient means of resolving conflicts.

Understanding these key clauses in your construction contract can help protect your interests and ensure a smooth project. If you need assistance reviewing your contract or have any concerns, Wyman Legal Solutions is here to help. Our expert team can provide the guidance you need to navigate the complexities of construction contracts.

Do you have a $50,000 or greater problem? Call us at (561) 361-8700 for expert advice.