Successful Tennessee contractors realize that the key to that success begins with a well-drafted contract. But without some key aspects included in the contract, projects can quickly derail.
Learn more below about the provisions well-written construction contracts should contain.
Detailed timeline
Your timeline is a blueprint all contractors should follow on every build. Yes, things like inclement weather or supply-chain delays can crop up and slow projects, but these should be the exception and not the rule. Each contract should detail deadlines, start and end dates and milestones that set the pace for an organized build.
Pricing and terms
Your contracts should include the total price for the project. Also include the payment schedule, which ideally should list any deposits, interim payments and the payoff at completion. Experienced contractors also add details about the payment methods and any penalties that will be passed along to subcontractors who flub due dates.
Responsibilities of contractors and clients
To avoid problems like scope creep, contracts should include protocols for approval of any changes. It should also list the permits and insurance coverage needed for each project. Omitting any of the above can lead to problems with the project (including potential litigation).
Termination clauses
Seasoned general contractors never forget this important component. Otherwise, they can get stuck on projects where the client fails to meet payment deadlines. Savvy clients also insist on adding clauses that allow termination for substandard work.
Do your contracts require an update?
It’s always a good idea to periodically review contracts to make sure they contain all relevant updates to terms and conditions. Your legal team is well-equipped to ensure your construction contracts are solid and able to withstand legal scrutiny.
