When you're drawing up a contract for a construction project, you have to ensure that it protects your interests. This doesn't have to be difficult, but you do need to include the important information so that you can enforce it if you have to down the road.
Most construction companies in California depend on the terms and conditions of contracts to form the basis of their business relationships with landowners, vendors, contractors and suppliers. Indeed, most businesses of any kind will depend on contracts in this manner. The written contract is the bedrock outline of the legal obligations that companies have to one another when they enter into an agreement. Construction companies in California should know the basics about contracts.
With California being the most populous state in the country, there are all kinds of construction companies involved in many different projects at any given time. These companies are oftentimes in competition with one another, but there are also many times when they work together on projects. Whether the relationship is between different construction companies, or between construction companies and their contractors, vendors and customers, usually there is a contract underpinning the rights and obligations of the respective parties.
A high-speed rail link connecting San Francisco and Los Angeles has been in the pipeline for a long time but the work has not picked up much pace. With the 2022 deadline for this project not too far away, the federal government is threatening to take away the funds that it had granted for this project. However, it now seems that the pace of work would finally pick up as the California High-Speed Rail Authority has issued a Request for Qualification that is worth approximately $1.65 billion.
There are a lot of things that can go wrong with any project, but most are addressed with a thorough contract. Having said that, there are also a lot of things that can go wrong with any contract, but most arise from one single fault during the creation process: ambiguity. There is nothing a construction contract can be that is worse than ambiguous. Yet it sometimes occurs - most often when numerous documents are combined to form the contract for the project (i.e. general conditions, principal agreement, supplementary conditions, specifications, drawings, change orders, etc.) Rushing to finalize contracts can end up resulting in conflicts between statements being overlooked and other unintended consequences.