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Essential Elements in Construction Contracts Part 1

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No matter the size of a project, anytime you are hired for a construction job, you are entering into a business transaction. Establishing a written contract before beginning work sets forth the expectations of the project and the responsibilities of each contracting party.

In this five-part series, our Orlando construction lawyers will discuss several essential items that should be featured in your construction contracts. Remember, at Cotney Construction Law, an Orlando construction lawyer can assist you with any of your construction project legal needs including creating a well-written contract that protects your best interests.

How Construction Contracts Work

Construction projects involve a variety of professionals that specialize in specific tasks in order to complete the project. The most basic form of a construction contract is the agreement between the general contractor and the owner. Because every project is different, the number of contracts an owner will enter varies including agreements with architects or other design professionals. Regardless of the number of contracts the owner agrees to, the general contractor is responsible for hiring subcontractors and creating a contractual agreement with these professionals. The subcontractors will then hire sub-subcontractors. There can be a wide array of contracts developed for a project.

The Many Tiers of Contracts

Each of these construction professionals will also require contracts with other entities away from the job site. For example, every contractor will work with a supplier in order to procure the equipment and materials they need for the project. Insurance, payment, and performance bonds are also a necessary evil. With so many tiers of contracts, an Orlando construction lawyer will ensure that all of these contracts are consistent and make certain that each contract contains the appropriate provisions.

The Qualities of an Effective Contract

In order to create an effective contract, the agreement should be carefully crafted by a legal expert. As we will discuss throughout this series, the contract needs to encompass a wide array of matters both directly and indirectly linked to the project. For example, if a third party were to file a claim against the project, the general contractor and owner need to have established how they would approach this matter and whom would be legally responsible for potential damages. An experienced Orlando construction lawyer will know how to address these issues.

For more information on essential elements in construction contracts, please read sections two, three, four, and five.

If you would like to speak with an Orlando construction lawyer, please contact us today.

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.