A construction contract is a formal agreement which is formed between two or more than two parties, wherein one of the parties is the construction company and the other is the client or customer who wishes to use the service of the construction company or construction worker. These contracts are legally binding documents which consist of certain terms and conditions which are mutually decided and agreed upon by the parties. Any construction contract has to be framed carefully paying attention to each detail or line written. For this purpose, given below are a few points which will help you to frame a perfect construction contract:

  • A construction contract must be written down in a legal or formal tone and a use of legal terms must be made wherever possible.
  • The contract must consist of the names, addresses, contact information of the involved parties and each party must be given a title. For example, here one party can be called as the CLIENT and the other as the CONSTRUCTION COMPANY.
  • The exact dates of commencement and termination of contract must also be written down in the contract.
  • The details of the construction work to be done by the construction company must be given out clearly so as to avoid any confusion during the contract term.
  • A construction contract must also have the part where the covenants, promises and terms and conditions are mentioned. These terms and conditions must be very well detailed and must be written point wise.
  • It is also important to mention the circumstances or situations under which the construction contract can be terminated mutually or by one of the parties.
  • The details of the amount to be given to the construction company¬† in return of the services provided is also another important aspect or part of any such contract.

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