Getting Familiar With Misunderstood Contract Terms Part 2
From a legal standpoint, construction contracts should appropriately allocate duties and risks, while reducing the doubts surrounding the completion of a project. The involvement of various parties such as owners, general contractors, subcontractors, designers, and suppliers, risks are not always avoidable. As Tampa construction attorneys, we know contracts serve a vital foundation for a successful project. It’s important that construction professionals have a solid understanding of some frequently misinterpreted terms. This second part will conclude our two-part series. Visit Part 1 to learn about the first two often confused terms.
Few projects can start and end without changes along the way. Whether there are changes in price, schedule, or work, they can impact your contract. Change orders represent mutual amendments to a contract but must be executed properly to decrease the opportunity for confusion or disputes. An offer must be made, parties must accept the offer, changes must be identified, and everyone must sign off on the change order.
Additional Insured and Additional Named Insured
Many get additional insured and additional named insured confused but they are different. An additional named insured has the same rights to coverage (with few restrictions) and responsibilities as the policyholder and can be held responsible where the main policyholder fails to meet obligations. The additional insured has limited coverage and is specific to the scope of coverage.
Why You Need a Lawyer
Many aspects of a project require preparation and great execution, but your contract should not be an afterthought in your pursuit to get a project started. Subcontractors need to be sure they are not being taken advantage of and owners and contractors alike need to be sure the contract terms are favorable. The best way to make this happen is to entrust your contract review or drafting to an expert Tampa construction lawyer. With the guidance of an attorney, you will have a better understanding of contract provisions and what the terms will require of you over the course of the project.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.