Reasons to pay attention to building contracts!
We have recently come across a situation where our client has signed a contract with his contractor – and had not paid attention to the t’s and c’s.
We can’t stress enough how important a contract is, but it must be the right one for the project. Below we have identified five reasons to pay attention to building contracts!
In this instance the t’s and c’s were heavily weighted to the contractor, as you would imagine. Also, there was little scope for negotiations on site variations, change orders and payment terms.
When a contractor has this much control, there is little we can do to help. In an ideal situation, if any changes or variations occur during a project, our quantity surveying team will assess the costs of the changes are reasonable. If they deem not, they will step in to find alternative solutions. Where CLPM are not included in the contract, we are unable to do this.
While we appreciate this might be incredibly frustrating to the client, and we will always do our best to resolve any issues, we are not always at liberty to do so. Hence, we always advise that having the right contract in place that you have read from end to end is key.
Using a contract in a building project is crucial for five main reasons.
Clear Scope of Work
A contract clearly defines what is to be done. Including the scope of the project, materials to be used, and quality standards. This helps avoid misunderstandings or disagreements about the work expected.
Legal Protection
Contracts offer legal protection to both the client and the contractor. If there are disputes or breaches of agreement, the contract can serve as a legally binding document to resolve issues in court if necessary. The contract can include clauses for how disputes will be handled. Such as through mediation, arbitration, or litigation, which helps provide a roadmap for resolving conflicts.
Project Timeline
The contract typically outlines the start and completion dates, ensuring that both parties agree on the schedule. This helps manage expectations and mitigates delays.
Budget and Payments
Contracts clearly state the project’s cost and payment terms, including payment schedules, milestones, and how changes in scope (additions or reductions) will be handled financially.
Risk Management
Contracts help allocate risks such as material shortages, delays, or accidents, making it clear who is responsible for handling these issues. Contracts often define warranties on the work performed and liabilities for defects or damages, ensuring that the contractor is responsible for fixing problems that arise within a specified period after completion.
In summary, a contract in a building project sets clear expectations. It will protect both parties legally, and help manage potential risks, timeframes, and costs effectively.
Type of Contracts
Although there are plenty of options, our quantity surveying team typically use JCT contracts. For more details on these – click here.
Get in Touch
We hope we’ve found our tips useful.
if you are in the planning stages of a building project and would like to discuss any of our services then do get in touch. Our friendly team can talk you through your options and we provide a FREE bespoke no obligation quotation.
Complete a contact form, email at info@cl-pm.com or call 01923 896550 to find out more.
