A construction contract is arguably a commercial construction venture’s most important document. Get it right and you have the foundation for smooth project delivery and an excellent result. But get it wrong and you could face delays, disputes, and a host of other headaches. Take a closer look at best practice so you can avoid a costly construction contract mistake.
Work With a Firm That Uses an Industry Standard Contract
Professor Kim Lovegrove FAIB, chair of the Centre for Best Practice Business Control, urges developers to exercise caution around contracts which aren’t industry standard.
“With the ‘take it or leave it’ contracts, invariably, they have been designed by very astute construction lawyers and the contracts have been tailored to impart as much risk as possible in the province of the person who did not have that purpose built contract drafted for them,” he explained to Sourceable
Get a Fixed Price
Knowing your project’s cost is crucial for organising your finances. Be wary of any commercial builders who insist they can’t provide a fixed price for design and construct work. Without a fixed price, you may face costly charges for unforeseeable delays and necessary deviations from the original plans, to name just a few. Instead, look to reputable firms like TPM Builders that advertise fixed price quotes. Work with TPM Builders
, and you can feel confident your project’s budget won’t blow out.
Terms Must be Negotiable
A construction contract should be negotiated
to ensure all parties are happy with its terms. If a construction firm won’t compromise on terms you feel are unfair, how will you have a good working relationship going forward? A construction project should be a partnership, so there must be some give and take.
Following best practices when drawing up your construction contract is the best way to ensure your construction is stress-free, and has the results you want.
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