Before signing anything, contractors and tradespeople need to be aware of the obligations contained in contractors. A well-drafted construction contract should clearly set out the work that needs to be done, the price of the work, and the terms and conditions of payment. The contract should also allocate various foreseeable risks between the parties.
What to Consider Before Signing a Building Contract
Price
The scope of the overall work that needs to be complete should be clearly agreed and understood by both the contractor and client. If necessary, the contract can refer to the plans and drawings attached. The pricing section of the contract should also cover any agreed variations to the original works.
Timeframe
The timeframe in which the work is to be completed should be clearly stated and agreed upon. It’s important that contractors pay attention to any time penalty clauses in the contract. Likewise, the contractor should ensure that they can complete the agreed works within the timeframe and understand how to overcome unforeseen delays.
Project Supervision
A contractor or subcontractor should be aware that a project supervisor may be appointed. If a contractor agrees to take on this role, they need to be aware of their obligations involved in the work.
Insurance
A contractor needs to ensure they have adequate insurance in place. For larger projects, additional insurance may be required. The coverage should be adequate to cover the project and any risks associated with the job, as well as the equipment and tools that the contractor carries.
For the commercial insurance to protect your business or construction mortgage to get started, contact the team at Northeastern Group Ltd. Serving New York and beyond, we are here to make insurance a snap.
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