Building Contracts: What You Need Know Before Signing

Understanding Basic Building Contract Terms

Building contracts are legally-binding agreements between you and your contractor that establish expectations and responsibilities on both parties involved in a building project. Before entering into any such contract, make sure that you fully comprehend each clause or term; should there be anything unclear, seek legal advice immediately.

As you review building contracts, several key features should be given special consideration:

1. Scope of Work: This section should outline all tasks performed by your contractor, from materials and labor through to final inspection and completion of your project plans and specifications. Ensure this aligns with them accurately.

2. Payment Terms: Make sure your deposit, progress payments and final payments coincide with specific milestones within your project.

3. Timeline: Your contract should provide an exact timeline for project completion; avoid vague phrases like "as soon as possible."

4. Warranties and Guarantees: For your own protection, ensure there are warranties or guarantees available covering workmanship or materials should any issues arise after project completion.

5. Conflict Resolution: Establish a transparent process for resolving disputes through mediation, arbitration or litigation.

Common Pitfalls to Avoid

Even with carefully written contracts, there can still be potential pitfalls that lead to disputes. One such issue is scope creep - where additional work is added without proper documentation and agreement - leading to disagreement over additional work added without written change orders or agreements in writing for modifications made after work begins. Another pitfall lies within unclear specifications which lead to miscommunication about material quality and type. Before beginning construction activities it's imperative that these details are clear.

Legal Review The Value of Legal Review in Business Operations

Before signing any building contract, it's advisable to have it reviewed by an attorney. A legal professional can identify potential problems and protect your interests as you negotiate terms more suitable to yourself - remembering that contracts are legally binding documents which make changes difficult once signed!

Preliminary Steps Prior to Signing

Prior to signing your contract, take these final steps:

1. Check all Documents: Ensure all relevant plans, specifications and other documents are attached and referenced correctly within your contract.

2. Verify Contractor Credentials: Make sure your contractor is licensed, insured and known for being trustworthy by asking for references and then following up.

3. Clarify Any Ambiguities: If there are any terms or clauses you don't comprehend, seek clarification right away rather than waiting until later to address any uncertainties that might arise. It would be more prudent and sensible for both of us to address uncertainties now rather than later.

Conclusion

Signing a building contract is a crucial step in any construction project. Understanding its key elements, avoiding common pitfalls, and seeking legal advice from Construction Lawyers Perth can help ensure a smooth and successful project. A well-crafted contract is your best defence against future disputes or issues. Take your time reviewing every detail before signing to maximise your chances of building success.