Key Clauses Every Construction Contract Should Include
Clear, enforceable contracts are the foundation of successful construction projects. Without strong terms in place, even simple disagreements can delay work, increase costs, or lead to legal action. That’s why partnering with a knowledgeable construction attorney is a way to protect your project from the start. The clauses in your agreement should match your scope, risks, and expectations.
Scope of Work
Every contract needs a section that outlines what work will be done, where, and by whom. This isn’t just a checklist. It defines what the contractor is responsible for, what’s excluded, and how changes will be handled. A vague scope opens the door to disputes later. A construction lawyer can help ensure the language used here reflects actual project needs and leaves little room for misinterpretation.
Payment Terms
Missed or disputed payments create friction. Your contract should list not only the total cost but also when and how payments are due. This may include deposits, milestones, and retainage. Late payment penalties and the process for handling delays should also be spelled out. The right contract lawyer will help ensure both sides understand their financial obligations and timelines.
Change Orders
Changes happen on nearly every job. Whether due to design revisions or site conditions, they must be addressed clearly in writing. Your contract should explain how change orders are initiated, approved, and priced. A good construction contract attorney will make sure these procedures align with your workflow so that updates don’t create delays or confusion.
Dispute Resolution
Mediation and arbitration can save you time and money. That’s why your contract should include a clause that defines how disputes will be handled. A construction attorney can explain your options and help you choose methods that match the size and complexity of the project. Having this decided in advance gives both parties a roadmap if problems arise.
Delays and Force Majeure
Construction is affected by weather, supply issues, and labor shortages. Your contract should address what happens when delays occur. This includes who’s responsible and how extensions are granted. A force majeure clause outlines which events excuse performance without penalty.
Warranties and Quality Standards
A contract should include warranty details and describe the quality level expected for all materials and workmanship. This protects the owner if poor work is discovered after the job wraps up. It also protects the contractor by limiting liability to agreed terms. A construction lawyer helps define warranty length, scope, and enforcement.
Termination Clauses
Every party needs a way out if something goes wrong. Termination clauses describe when and how the contract can be ended. This could be due to nonpayment, repeated delays, or safety violations. These clauses are crucial when trust breaks down, and they protect you from being locked into a project that no longer serves your interests.
Including the right terms in a construction contract isn’t about checking boxes. It’s about reducing risk, clarifying roles, and protecting your investment. With support from an experienced construction lawyer, your contracts become stronger tools, tailored for impeccable results.