What to Look For in Your Construction Contract

Construction contracts are lengthy documents, and while essential, you may find yourself becoming glassy-eyed at various points in your review. If that’s the case, grab another cup of coffee and tune in specifically to these important areas of the contract:


  • Scope of work – This section of the contract will spell out exactly what work will be performed per the contract. Any discrepancies between what you are expecting and what the contractor is offering should be addressed immediately.


  • Schedule of work – Protect yourself from enduring a project that last weeks or months longer than anticipated. Evaluate the project schedule in the contract and consider what, if any, clauses are included to account for delays.


  • Contract documents – The contract will include attachments that are referenced at various points throughout the contract. Be sure to review the drawings and specifications to ensure that the correct versions are attached.


  • Payment terms – What, when, and how will the contractor be paid?


  • Change orders – It’s important to understand the process for submitting changes to the project once the build is underway. Pay attention to notice deadlines and what happens if a change is not accepted.


  • Warranties – What warranty terms are included for labor and materials, and how long does the warranty last?


  • Termination clause – What happens when either party ends the legal relationship and discontinues their obligations under the contract agreement? Review the termination clause to be sure you clearly understand the commitment and responsibilities of both you and the contractor.


  • Dispute resolution – There should be a section on dispute resolution and how they will be handled. There may also be an attorney’s fees provision in the contract.


Construction contracts are legally binding documents and should be evaluated with care and in consultation with an attorney. If you have questions about what is included in one you received, don’t hesitate to contact us at Seacoast Construction for help.

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