Running a construction business means you must frequently enter into contracts with suppliers, subcontractors and your employees. You want your contracts to be strong and enforceable to ensure timely project completion and to reduce issues.
You may find that as your team numbers increase (The Centers for Disease Control Prevention reported a 25% increase in construction workers between 2011 and 2019) and your projects multiply, you create new contracts more frequently. These tips can help you prevent major issues with the contracts your business develops.
1. Use clear, concise language
Take time to outline your expectations for the work you want to be done and make sure all of your construction contracts are in writing. Be as clear as possible with your language to avoid miscommunications and misunderstandings.
2. Focus on scope, time and price
There are three essential elements to most construction contracts: price, time and scope. Focus on these elements as you draft your contracts and if you want to add more detailed information, attach a proposal as an exhibit.
3. Put all changes in writing
Many contract disputes arise after a change occurs that the contractors do not put into writing. If you want to change the terms of a contract at any point, put these details in writing and get the signed approval of all parties involved.
The strength of your construction contracts can directly impact the success of your projects. Put necessary time and thought into your contracts beforehand to prevent delays, disputes and issues later on.