Contracts

Top 6 Terms to Know in Your Construction Contract

Before signing any contracts, the contractor should be aware of a few legal terms and how they affect them. Contractors avoid risks by education themselves of provisions written in the contract. If contractors are able to understand the specific language in their contracts, then they can identify changes to address with their Tampa construction lawyer.

Contract Terminology

Scope of Work

The scope of work references quality, completion, coordination of responsibilities, and estimation of the construction project.

Indemnification

Indemnification means that one party agrees to assume responsibility for certain judgments resulting from third-party (i.e. subcontractors) claims. Limit indemnity obligations to specific items and utilize insurance coverage.

Warranties

Warranties guarantee to the Owner and Architect that quality materials and equipment will be provided. These materials are new unless otherwise noted and the work contains no defects. The warranties will typically begin once the owner begins to use the equipment or product.

Know your warranty terms and establish definite start and end dates for all warranties. It is best to negotiate for a one-year warranty on materials and labor.

Change Orders

During the course of a project the design, conditions, and plans may change.

The contract typically addresses these situations through change order procedures. This process helps to establish ground rules for potential disagreements between the contractor and owner.

Delays

Standard agreements allow contractors to claim time extensions when unexpected delays occur. This includes labor disputes, material shortages, and delays caused by the owner or architect.

Minor Changes

Minor changes are the final way to make changes. Parties sign a change order to make the change without litigation or further inconvenience. There may be conditions and limits in your contract regarding the terms by which a minor change can be brought up.

For more information, please contact our office at 813.579.3278 or submit our contact request form to schedule a consultation with one of our Tampa construction lawyers.

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.

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