How to Write a Construction Contract

Arrangement is an important factor for every contractor. A contract is a document that will clearly state the rights and obligations of the contractor. Ensure that before you begin the project, the construction contract must be signed. In other states, it is a requirement that both parties have the contracts handwritten and signed. Below is a procedure for writing the contract:

  1. Title: the title shows the reason for the contract and the preamble part shows the names of the individuals involved, date of the contract, location of the project, and start and end dates.
  2. Make a short description of the tasks that must be performed. The description should include the equipments, materials and the time to be taken.
  3. Describe the project budget: This is the financial expenditure that the owner is likely to incur. Interest, deposit refundable and non-refundable, price of the contract and final payment. Include all dates for making payments.
  4. Description of the project- This is the details of the proposed project. The overview should be brief and understandable.
  5. Make a description of how the change of tasks will be handled and who may handle them in case of unexpected work. Ensure that you make a provision for additional costs. Clearly state the change of claims and orders. Change orders in terms of labor, plans, materials and tools.
  6. Make a choice of how you will resolve your disputes in case they occur. How you will resolve them, lawyer, arbitrator or a mediator. This will save you time and costs in case there is a dispute.
  7. State your insurance terms- workers compensation and general insurance claims. State your insurance company and the amount of money you are likely to recoup in case of any risk.
  8. State how you shall conduct your work.
  9. At the bottom, create a line for making a signature. The spaces should allow all the parties to include their names and sign.