Emily Clarke

How to Structure a Construction Contract

Having home improvement contracts in place before construction work begins on your home is vital for your protection and accountability. Home improvement contracts can be used to set expectations and provide guidance if an issue becomes a legal matter.

If you're planning to enter into a construction contract with a home improvement services provider, below are some tips on how to structure the document:

Include All Personal and Business Contact Information

Every party to a construction contract needs to include contact information in the document. This information includes the names of contacts should someone need to be consulted about an issue, but it should also include the legal addresses and phone numbers of all parties. Email addresses and other methods of contact can be included as well.

The reason for including this information is to be able to contact people in the event of a question or issue, but it's also for legal protection. If something goes wrong and you need to take legal action, papers will likely need to be served to one party or the other to give notice.

The Scope of the Project

The contract should then explain the scope of the work to be performed. This information should be as specific as possible to avoid any confusion. Laying out the scope of the project in detail can also combat "scope creep", a phenomenon that occurs when parties begin to add small amounts of work to the project that were not part of the original agreement.

A Signature for All Parties

All parties should also sign and date the construction contract. You don't need a signature from every single person who will be working on the project, but you do need a signature from all designated representatives of each party. These signatures act as a legal promise to abide by the terms of the contract, and by signing this document, everyone is accountable to the terms should a legal matter need to be brought forth in court.

Author Resource:-

Emily Clarke writes about sales and business automation tools for construction companies and contractors. You can find her thoughts at software for contractors blog.