You need a solid contract before you can start any construction work. It helps you avoid problems with the contractor. Your rights and interests are legally protected. The documents of the contract must cover all aspects of the construction project. The type of documents included in your project contract depends on your specific contracting requirements, type of project and local laws. Following are some of the documents included in a construction contract.
It is the basic document that is part of any construction contract. The rights and responsibilities of both parties are clearly defined in this document. This agreement document may be sufficient in case of a small project. However, many other documents are needed if it is a large project that is complex and expensive. The contract agreement is the most prominent and essential part of any document signed by the project owner and the contractor.
Scope of Work
This document defines what the contractor is required to accomplish in the project. It is useful for contractors who are going to bid on the project. A well defined scope of work document helps receive bids that are clearly defined and correctly priced. The contractors know the type and amount of work they must complete to fulfill the project obligations. There is no ambiguity and the contractors know what type of workforce and equipment they have to arrange for completing the project.
A contract cannot be signed unless the drawing of the project is available. Latest drawings made by the professional architects must be available before the contract documents are signed by the project owner and contractors. The project scope becomes clear to the contractor when proper project drawings in the standard formats are available.
Construction Schedule Document
A large project may take months or even years to complete. It is necessary to define how much work must be completed within a certain period of time during this schedule. A construction contract schedule helps define timeline for each stage of the project. The contractor knows the construction workforce must complete a certain part of the project within the given time limit. The project owner also knows that the payment must be made to the contractor after the required part of the project has been completed.
A large construction project requires use of a wide range of materials and products. The owner has to decide if these items will be procured by the contractor or made available to them. Each item required in the project must be detailed correctly with the right specifications and measurements. This can be done only with the help of a contractor who has experience in this field. The budget of the project can be prepared properly when details of all products needed in the project are already known.
Construction Insurance Documents
When contracting a construction project, both the owner and the contractor must know the insurance obligations. They need to know what type of insurance policies have been obtained and by whom. Some insurance policies must be obtained by the owner while other policies are obtained by the contractor. These insurance policies help protect the project from cost overrun due to unforeseen circumstances and accidents.
These contract agreement documents for construction projects help avoid disputes. The project is completed on time and within the budget.