Every construction project has a contract, which is necessary for the project to commence. If you enter into a significant economic transaction with another party, you must ensure that the agreement is documented in writing, as construction projects are complex by nature.
Moreover, if the agreement is written, it would be helpful for all parties involved to have the means to recall what was agreed. This holds, especially when there is a risk associated with your business.
For this reason, it is strongly recommended that you give it some careful thought to put such an agreement into writing.
What Is A Construction Contract Agreement?
A written document specifies the scope and conditions of the work on a construction project, known as a construction contract agreement. It is a contract between the contractor and the company or person that employs them to conduct the work.
Managing a contract in a construction project might be overwhelming, but you don’t need to worry, for this is where a construction law attorney comes into play. Although you can manage it all alone, hiring a professional to assist you will be more beneficial.
If you have a contract agreement for a construction project, say, in Australia, and you want to hire an attorney with such expertise, you can go to https://morrisseylaw.com.au/ for more information.
Moreover, most contract agreements ought to comprise particular sections that protect the parties involved in the agreement. And each agreement should have multiple sections of clauses detailing the project’s terms, scope, and conditions, such as:
- What will be accomplished?
- When will it begin and be completed?
- Who will be involved in the construction procedure?
- The expense of labor and supplies
- How will parties communicate?
- Modifications to the agreement’s scope of the project or other provisions
- How the parties will settle conflicts
Although there are various ways for a contract to exist, this article will focus on the essentials of a written contract agreement. In a well-written contract, the written provisions clarify the agreement between the parties, their goals, and their relative responsibilities and contractual obligations with clarity and conciseness. On the other hand, the parties’ verbal discussions or negotiations establish the controlling terms in an oral contract.
Why the Need for a Written Contract?
When contracts are not established in writing, one of the most significant issues is that each party’s recollection of the agreement can change from time to time, which is particularly troublesome if a dispute occurs in a construction project.
Furthermore, people often state false information about the terms of an agreement when a dispute emerges. As a result, considerable quantities of money are at risk. A memory that is different from or inconsistent with “the truth” will be taken advantage of to strengthen their position. Most of these issues can be avoided when such a contract is reduced in writing.
Thus, having a well-defined and well-written contract is advantageous for a construction project. Even when the parties “trust” one another, a written contract gives a transparent blueprint at the beginning of the project outlining how the parties shall continue to perform the job.
This will help ensure that the project will operate smoothly. Moreover, when a dispute arises between the two parties, who agreed upon the contract, and such a dispute leads to litigation, this written agreement will lessen the terms that will be genuinely in dispute. This results in a conflict resolution that is either more effective or, at the very least, less costly as there will be minor problems that both parties may legitimately fight.
Simply put, each party can turn to the terms of a written agreement in the event of confusion or dispute. A lawyer can readily examine a written contract and identify any ambiguities or problematic clauses. In the unfortunate litigation case, a written contract gives the court a clear understanding of each party’s contractual duties.
Legal Provisions Regarding Default
If a term is not established in writing, the law could provide a default term in the event of a dispute. By putting such terms in writing, both parties can control how the problem will be addressed and prevent having a default term unfavorable to their position imposed upon them.
Even though the law provides a default term, that term or obligation can frequently, though not constantly, be amended by both parties in a written contract. In many instances, a modification should be made in writing and signed by the parties involved. In certain limited circumstances, the law mandates that the amendment be made in writing and that specific words be used.
Final Thoughts
Any construction project might have one or more contracts regardless of scale. If you are getting into or planning to agree to a construction project, consider establishing the contract in a written form, as this article explains. Also, consider hiring a construction law attorney to assist you with contract management.
