A construction contract is a document which is signed between two parties in which the cost and other details of the construction work which decided by the parties are specified. This type of a contract is legally binding and any deviation from its conditions can result in legal implications.
Construction contracts can be of two types: commercial and residential. The terms and conditions relating to both are different. They cover complex projects and even simple renovation work.
A construction contracts must consist of the following:
- The scope of the project must be defined which means that a detailed account of the nature of work expected must be specified.
- Schedule work must be stated which must include the effective commencement date as well as the estimated time of completion of work.
- Mentioning the total cost and the way the money would be paid forms an integral part of any contract. Also it is important to know when and how the payment must be done.
This website will help you to look into various types of construction contracts.