What to Expect from a Contract with a Construction Company?
A construction contract is considered to be a legally binding agreement between a construction company and their client. It is extremely in-depth and can cover simple renovations to complex projects. There are generally only 2 kinds of clients which will be given a contract, which a residential and commercial. Each client will have their own unique requirements which will determine what will be included in their contract.
A residential contract will usually have 3 elements, which are payment details, project scope, and timeline. The property owner and the project manager for the construction company will both have to agree and sign the contract. The project scope is exactly what construction work will be done. This section will also include schematics, artist’s rendering, and any other specific instructions. Both parties need to agree this section is an exact representation of the work to be done.
A timeline will show the start date, any milestones, and jobs completion date. Make sure to review this section carefully to ensure all the primary requirements pertaining to the project have been included. The process for inspection and quality assurance must also be shown there.
The payment details will include the total cost and all the payment dates. All construction projects will be paid on a percentage of completion. A deposit of 5% of the total costs must be given at the beginning of the job. The next payment will be made when a predefined phase of the project is finished.
Commercial construction contracts do vary from the aforementioned format, as they will be much more in-depth. In addition to the above, a commercial construction contract will have procurement process details, dispute resolution instructions, specifications pertaining to legislative coverage, and any contingency plans. If you are looking for a construction company to help you with your project, no matter or big or small, then you need to call Rot Repair Master in Everett, WA now at (425) 345-5487.