The Importance Of Construction Contract Agreements

It does not matter whether the Milwaukee WI company you are hiring is commercial or residential. They may be a large construction concern or a smaller company. They have at least one thing in common. They need a contract before starting any work on the project. Before anyone signs on the dotted line, make sure he or she must understand the importance of putting into place a contract agreement.

Construction Contract Agreements

Contracts are specific legal documents. They provide precise information on the start and other significant dates. It specifies which parties are to participate in the project and lays out exact terms. The owner or project company head usually initiates the contract. It is then up to the Milwaukee WI general contractor, or construction company management to provide the requested services included within the contract.

The contract needs to contain specific sections addressing the various issues. Among the essential ones are:

* Project Description

* Scope of the Project being undertaken

* Conditions a list of responsibilities and the extent of both for both parties – owner and contractor

* A list of the various documents comprising the contract

* Price

* Payment Method and Schedule

* Calendar or Work Schedule

The contract should also provide pertinent information concerning applicable laws, liens, and even how to handle claims, termination and even work suspension. It should also NEVER be a verbal agreement. In order to be a legal and binding document, it must be visible. All parties to which it pertains must sign it to legitimize it.

Why Is a Construction Contract Important?

A contract is important for all involved parties. It clarifies and clearly indicates the specific roles of everyone and provides parameters. It defines the scope of a contractor’s work. It also makes certain there is a meeting of the owner and the construction manager, contractor or company. Overall, it ensures that all proceeds on this Milwaukee WI construction project as smoothly as is possible in the building business.