A construction contract is a must before the actual construction takes place. A construction contract is a written down agreement made between the owner of the property and the contractor. It must include a very detailed explanation of all the important information and dealings between the two parties. It may seem unnecessary especially in the case of small projects but it must be considered an essential especially by the contractors. Because in case the client files a false claim against the business, the contractor will be able to provide evidence and resolve the case. Lack of contract will not only lead to expensive lawsuits but if the contractor is unable to prove himself innocent, the bad judgement could affect the entire contracting business and may lose a large portion of the existing clients. Therefore no matter the size of the project it is important that the contractor writes down a contract. Below is a list of steps to make it easier to write down the contract.
Although it may seem unnecessary both parties must be aware of the construction law Melbourne. It is best that it is included in the contract but there is no harm if it isn’t. As an extra step it is also better if the final contract is referred by a lawyer to ensure its purpose.
Both the parties must be mentioned on the contract. The full name of the legal owner of the property and the contractors’ business name must be stated in the contract. If not it may be rendered useless by the law. Also make sure that at the end of the contract both parties are made to sign as valid proof.
It is best that every single work is mentioned in the contract. You could also include plans and designs to ensure that there is no detail left out. A fully explained contract will be helpful in case disputes arise during construction so that proof can be shown and the issues can be resolved without legal cases. Also include the jobs and tasks carried out by other contractors so that your business will not be liable in case of a mistake on the subcontractors’ part.
Although no party favours disputes during construction it is better to make arrangements to handle it if it arises. Professional building dispute lawyers may be sought for advice on how to handle such cases without expensive costs in the process.
It is important that the total amount to be paid is mentioned in the contract. Also state the method of payment and exactly when the contractor will be paid by the client.