Essential Provisions in a Construction Contract

Construction contracts are very complex. If not negotiated and drafted with superior skill, disputes will develop. A construction contract should provide detailed information regarding every aspect of the construction. Involving an experienced attorney in formulating a construction contract at the beginning may help prevent future headaches. Here are a few essential provisions that should be included in a construction contract:

Scope of Work – This is important because a contractor is not required to perform work that is outside the contract’s provisions. The scope of work provision should clearly define the duties of each party. Further, the scope of work should exclude services that parties will not be held responsible for providing. A scope of work provision is especially important when changes are ordered by the owner. Changes orders may result in a breach of contract unless a separate provision allows the owner to make such orders. All parties should make sure they understand and agree to everything provided in the scope of work.

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