Construction Contract Template

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As a contractor it is vital to your business that you have a contract that has been signed by your customer before you start on any construction project. This contract is the only protection you may have if your customer should decide that what you are doing is not what you agreed upon. As long as you have a written contract that was drawn up using a construction contract template that shows the original agreement your customer does not have a leg to stand on in a court of law. You should never do anything without a properly singed contract.

Any time you have a contract of any kind that is signed by two people it is considered a legally binding agreement between both parties and is expected to cover every aspect of the work or services be performed. The construction contract template you choose should be designed such that nothing is left to chance, it should include information such as the name and address of both you and your customer.  The contract should also cover information such as the planned start date for the project and the estimated end date.

Along with this your contract should list exactly what the customer has stated that they want done, right down to the smallest detail. If you have it written down and the customer have signed the contract agreeing with what is written they have no recourse as long as you have followed the contract to the letter. You contract must also show the estimated costs and how the work is to be paid for. If you are expecting your client to make payments while the work is ongoing, the payment schedule should be listed on the contract so that no mistakes or misunderstandings can happen.

One last thing that should be covered in any construction contract template that you use is a place to list the things that you will not be doing on the job in question. This way if your customers decide that they will be supplying some of the materials themselves, you can list this on the contract so that you cannot be held responsible if the materials they supply are subpar and cause problems with the work you perform. Since you carry your own liability insurance you will want to list this on your contract as well so that you clients know that you are covered.

State laws was making it truly tricky on contractors by requiring specific disclosures and statements in their home improvement and construction contracts. The times of handshake agreements are over.

Failure to incorporate state-mandated disclosures or statements in a construction contract could lead to fines, or make any construction contract invalidated. Many contractors are ignorant of these state changes in the laws influencing contracts. Contractors sometimes run home businesses and put their focus on building to state codes instead of keeping an eye on legal changes needed by state contract law. Many contractors still do business on a handshake or try a straightforward “boilerplate” one-size-fits-all contract that most-likely omits precise state necessities. Read the rest of this entry »