Construction is a complex process that involves a significant investment of time and financial resources. Projects can take a long time to complete, and things do not always go as planned. If you are a Minnesota contractor or construction manager, or you are involved in the construction side of a project, you understand the importance of taking every precaution possible to protect yourself and your interests. One important and practical way to do that is through strong contracts that are clearly and carefully worded.
Like other types of legal agreements, construction contracts should contain clear terminology that reduces the chance of a misunderstanding or dispute between parties. A coherent agreement can protect all parties involved, and it can provide clarity and a realistic perspective of rights and responsibilities. Your contract can specifically suit the details of the individual project.
Important terms and details to include
As you consider the terms you will need to include in your construction contract, it may help to remember that this one agreement is to provide protection and clarity at every step of the process. The following inclusions and details are critical as you work to create a contract that will make sense for the entire duration of the construction project:
- Scope — It is important to clearly define the scope of the work that the contractors and others on the construction project will perform.
- Exclusions — List the specific things not included in the project and not in the scope of your responsibility.
- Changes — Explain the process of making changes to the project after it is already underway.
- Schedule — Include details about the expected schedule of the project and the projected pace of the work.
- Dispute resolution — In case a dispute arises at some point, include in your contract details regarding how you prefer to resolve those problems.
In the event that there is a dispute over any aspect of your construction project, having a clear and cohesive contract will be critical. This document can protect you against financial loss and other complications. There are times when legal action is necessary in order to enforce the terms of a contract. In this situation, you may benefit from an assessment of your contract and explanation of how you can pursue legal recourse as a means of protecting your rights and interests.