A construction project can be difficult to navigate. You might take comfort knowing that there’s a contractual arrangement in place, but the truth is that all too often these agreements prove problematic. So, before creating or signing off on a construction contract, you have to make sure that you’re avoiding common mistakes that could prove disadvantageous to your ultimate goals and that could wind up being extraordinarily costly.
There are a lot of missteps that can be made when dealing with a construction contract. These include:
- Neglecting to write down all portions of the agreement and instead relying on your word or the word of the other party.
- Failing to secure the other party’s signature on the contract in a timely manner.
- Including a timeline that’s muddled and unclear.
- Using terminology that isn’t defined and that’s therefore ambiguous or vague.
- Neglecting to address how change orders will be handled if the need arises.
- Relying on online resources to create or interpret a construction contract.
- Failing to adequately calculate labor costs.
- Agreeing to a price too early in the design process.
- Forgetting to include mandatory disclosures.
- Failing to address potential delays.
- Failing to address other issues like defective work, insurance, assignment of the contract and subcontracting.
As you can see, regardless of which side of a construction transaction you’re on, there’s a lot to take into consideration. And if you miss addressing a key point, then you could be at a significant disadvantage moving forward.
Know how to protect your interests in a construction project
There are multiple issues that you have to be prepared to address when dealing with a construction job. You don’t want to make an inadvertent error that’s puts you at risk. So, if you have questions about the best way to navigate your unique set of circumstances, then be sure to discuss them with your attorney.