Contract Review and Drafting
From promissory notes to warranties to pay-when-paid clauses, the successful operation of a construction business is largely determined by protection garnered through well-drafted contracts. Contracts are what defines the expectations of contractors, subcontractors, owners, developers, material providers, and more. With that said, it is imperative to have an experienced Jacksonville construction law firm draft, review, and revise all contracts before entering into a legally binding agreement.
While contracts vary dependent on their purpose, there are common elements that should be found within each contract to help mitigate risks. Below, the attorneys from our Jacksonville construction law firm have outlined answers regarding these important contract details.
Which parties should be included in the contract?
Each party or entity personally responsible for the execution of a project, along with the party or entity to whom the services are being provided, should be included within the construction contract. It is important to note that only an authorized representative can legally enter into a contract on behalf of a business. It is also important as a business owner to protect your personal assets. If your company is providing services, make sure the business name and not you as an individual is outlined in the agreement.
What are the expectation of each party?
There are two expectations that should be outlined in every contract. One is the expectation of the contractor, which should in detail describe the services or materials being delivered. The other is the expectation of the owner. The contract should outline overall cost, the amount to get started, how subsequent payments will be delivered, and how change orders will be processed.
When should should services be completed?
The date in which the project commences, completion dates for various phases of the project, and a final completion date should all be outlined within the contract. When reviewing this section of a contract, make sure you are comfortable agreeing to the proposed terms to avoid a potential construction dispute in the future.
What if any provisions are made within the contract?
While many elements of a contract will be the same between projects, in some cases there may be special provisions designed to promote the interest of the other party such as an indemnification clause, pay-when-paid or pay-if-paid provisions, or termination provisions. While it is always beneficial to consult with a construction law firm in Jacksonville before entering a contract, it is especially important when special provisions exist that could negatively affect your best interest if a dispute arises.
Choose an Experienced Jacksonville Construction Law Firm
Entering a legally binding contract should not be taken lightly. Regardless of how small a project may be, it is always beneficial to protect your business and consult with a Jacksonville construction law firm whose team can ensure that your rights are protected should a breach of contract occur by another party.
To schedule a consultation with Trent Cotney, P. A., please call us today at 904.425.5030 or fill out our contact request form.
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.