Original Contract & Conditions of Contract

Audience

• Owners as “Buyers”

• Builders as the “Contracting Entity”

• Lawyers

• Lenders and Title Companies

• The Public (if a “public” contract)

Purpose

• To define the terms responsibilities of each party under which the defined scope of work is to be completed, typically reflecting time, cost and quality issues as well as the management of the project during the contracting period.

Style

• Clear language, usually in a “standardized” outline form.

• “Legally” unambiguous (though even this is the subject of legal disputes)

• Must identify the parties to the contract and their separate and mutual responsibilities under the agreement.

• Will typically specify the cost of the work, and the responsibility for cost.

• May or may not identify the time period within which the contract must be executed.

• May or may not specifically articulate the quality of work expected, typically identified in the contract documents (drawing and specifications)

• Identifies how the project and the contract terms are to be managed during the entire life cycle of the contract.

• Assigns the risk of the project, typically to the party best able to absorb the risks