Construction is considered one of the biggest industries in the world because as long as humans live, they will continue to build houses and businesses for their pleasure and peace. This industry is based on the foundation of skilled workers who work tirelessly to convert plain grounds into skyscrapers. The construction industry is mostly skilled but working class in society. These people learn this art from their ancestors and most of them have not even been to school or any other educational institute.
What is a construction contract?
A construction contract is a legal agreement between a construction contractor and the land owners, which defines the terms and conditions of the agreement during the construction period. Construction is not an easy task rather it is considered an art that requires the integration of various departments to convert mud and soil into a beautiful building. These buildings may include homes, hospitals, entertainment centers, shopping malls, etc.
The overall process of construction is tedious and complicated because it includes people from different professions such as architects, engineers, machine operators, laborers, managers, quality control personnel, etc. Moreover, heavy machinery and loads of construction materials are required for building from the ground up therefore, it is important for both parties to have an agreement in place that will help both parties to stay in their respective zones.
Important things to include in the contract
Every contract is different and is based on the mutual understanding between two parties. Some of the essentials elements of a construction contract are given below,
- Project scope: entire scope of the project is discussed in detail to make sure that the complete map is understood by both parties and nothing is unclear.
- Timeline: a definite timeline of project completion is decided by the parties and the Construction Company or developer is responsible for completing work in due time.
- Materials: required materials are either provided by the client or the developer themselves but the material is discussed in detail to make sure that no party remains unaware of the situation.
- Quality control: all types of quality control tests must be conducted to ensure good quality work.
- Cost: cost of the entire project is discussed beforehand by taking the price of material and labor costs into account. Cost may fluctuate due to changes in material prices therefore, all types of situations are taken into account while devising a contract.
- Payments: number of installments and due dates for their payments are a part of the construction contract so that the troubled party can be held accountable.
- Changes: changes after the project has been started are appreciated or not, should be discussed while devising construction contracts.
- Accountable: both parties can be held accountable if they do not provide what they promised in the contract.
The contract can have various types
Construction contracts are of various types and people choose the most appropriate type which suits their needs. Some of the important points of a construction contract are given below,
- These outline all the conditions for the time period, quality of required material, cost of the entire project, etc.
- In case of ignorance of the contract, both parties can be held in a court of law.
- Contracts help in pre-designing the entire project so that every point can be taken care of.
