Non-Construction Contracts Containing Construction Work Guide

Construction work can be a significant part of a non-construction contract. It is essential to include provisions that address construction work in these types of contracts to avoid ambiguity and prevent potential disputes between parties.

Below are some essential factors you should consider while drafting a non-construction contract containing construction work:

1. Define the Scope of Work

Before beginning any construction work, it is important to have a clear understanding of what the project entails. The scope of work should include all details related to the construction work, such as the project`s objective, the work`s specifications, and the timeline for completion.

It is essential to ensure that the scope of work is clearly defined in the contract to avoid misunderstandings later on. Additionally, the scope of work should be periodically reviewed and updated throughout the project to ensure that all parties are aware of any changes.

2. Determine the Payment Terms

Another critical factor to consider is the payment terms for the construction work. The contract should specify the payment schedule, including the amount and timing of payments, and any penalties for late payments.

It`s important to note that many construction projects require substantial upfront costs, such as materials and equipment. Thus, it is important that payment for construction work is made on time to ensure that the project can be completed within the agreed-upon timeline.

3. Identify the Responsibilities of Each Party

In any contract containing construction work, it is important to identify the responsibilities of each party involved in the project. For example, the contractor may be responsible for the construction work itself, while the client may be responsible for obtaining permits or providing access to the work site.

It is crucial to ensure that each party`s responsibilities are clearly defined in the contract to avoid potential disputes later on.

4. Include a Warranty Provision

The contract should also include a warranty provision specifying the terms and duration of any warranties for construction work. This provision should identify any defects or issues that may arise with the work and outline the steps that need to be taken to remedy them.

5. Establish a Dispute Resolution Mechanism

Finally, a non-construction contract containing construction work should include a dispute resolution mechanism to address any disagreements that may arise. This can include mediation or arbitration clauses that outline the steps parties should take to resolve any disputes.

In conclusion, non-construction contracts containing construction work require specific considerations to ensure that all parties involved in the project fully understand their responsibilities and that the work is completed on time and within budget. By addressing these critical factors in the contract, you can avoid potential disputes and ensure that the project runs smoothly.