What to put in your construction contract to protect your company

What to put in your construction contract to protect your company

| Oct 1, 2020 | Construction Law |

Owning or managing the construction business means that risk comes at you from every angle. You have liability if your employees get hurt on the job. You have liability if clients feel dissatisfied with your work, and you have the risk of people bringing frivolous claims against your company if you aren’t proactive with legal protections.

Some people will claim that you did a substandard job or failed to meet their expectations simply because they want to get out of paying you for your services. Getting help with the creation of a thorough and specific construction contract for each project can minimize your risk of construction defect claims.

Every contract needs to outline certain specific terms in writing

The point of a contract is to create a permanent record of the agreement that you enter into with a client. Rather than merely having a client sign a document that includes your quote for the cost of the construction project, having them sign a contract with specific terms will make it easier for you to prove you did your job properly.

Examples of things that you should include in your contract include:

  • Expected turnaround times for different stages of work
  • How long a reasonable delay might last if there are weather or supply issues
  • What standard the final product should meet
  • What materials you should use
  • What qualifications the workers for the project must have
  • What needs to be done to negotiate cost increases for the project in the event of unforeseen issues

There may be other terms that the client requires that you will need to integrate into the contract. Regardless of how specific or complicated a request is, including it in the contract in written form will prevent complications if the client tries to change their expectations after you complete the work.

Contracts help protect businesses from unnecessary litigation

Unhappy clients could easily cost your company thousands of dollars in legal fees and lost time. One of the most simple ways for you to protect your business from financial losses and declining reputation is to execute a thorough contract with every new client and ensure that you and your staff members adhere to the terms in that contract.