Construction Law
The details of a construction contract are critical to the success of a construction project. For this reason, it is imperative to make sure you have a Tampa construction lawyer review your contract to confirm that it is written in a manner that is not only clear and fair to all parties involved, but more importantly, is designed to protect you and your best interests.
These five essential elements of a construction contract can result in major vulnerabilities if overlooked:
1. Full Name, Address, and Signatures of Both Parties
Though this may sound obvious, this commonly overlooked element of construction contracts is required to make the contract legally binding. Without the proper information or appropriate signatures on all required documents, it will be difficult to get the contract to hold up in court.
2. Scope of Work
Although this is an element that is often included in most construction contracts, many individuals tend to overlook the necessity for details. This area of the contract should, in great detail, explain the services to be provided, including a description of materials, quality, grade, schedule of work, and other specifications pertinent to the construction of the property.
3. Project Cost and Payment Terms
This is an area of a construction contract that should be clearly and simply stated. There should be no confusion as to the cost of services included and cost of services beyond the scope of the project. The schedule of payments, the amount that is due, and the terms and conditions of payment should also be clearly outlined in this section of the contract.
4. Schedule of Work
Establish a clear notice to proceed date, a construction start date, and date of completion, and be sure to differentiate between calendar days and work days. It is also wise to include in the contract that you are not responsible for delays caused by the property owner in obtaining the required permits, easem*nts, and approvals, or for delays as the result of bad weather. Make sure to account for lead times from your suppliers, and if there are change orders, be sure to document any additional time they will require.
5. Authority
With so many moving parts, it can become difficult to establish who has authority to make decisions during a construction project. This is why it is important to make clear who has the authority to make legally binding decisions before project initiation. This simple element of the contract can save a lot of headache and confusion during the project.
To ensure that your contracts are designed to protect you, seek the help of an experienced Tampa construction lawyer to review or draw up your construction contracts.
If you would like to speak to one of our Tampa construction lawyers, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
FAQs
A contract is a legal agreement between two or more parties in which they agree to each other's rights and responsibilities. Offer, acceptance, awareness, consideration, and capacity are the five elements of an enforceable contract.
What are the 5 essential elements of a construction contract? ›
Five Essential Elements of a Construction Contract
- Full Name, Address, and Signatures of Both Parties. Though this may sound obvious, this commonly overlooked element of construction contracts is required to make the contract legally binding. ...
- Scope of Work. ...
- Project Cost and Payment Terms. ...
- Schedule of Work. ...
- Authority.
What are the 5 essential elements of a contract? ›
A contract is a legal agreement between two or more parties in which they agree to each other's rights and responsibilities. Offer, acceptance, awareness, consideration, and capacity are the five elements of an enforceable contract.
What are the 5 components of contract documents? ›
Most verbal and written contracts share common provisions, each of which must be met for the contract to be a binding legal document.
- Offer. A binding contract must have a specific and understandable offer of a valid item that the other party accepts. ...
- Acceptance. ...
- Mutual Consideration. ...
- Competency. ...
- Legal Purpose.
What are the important aspects of a construction contract? ›
The price listed in the contract should be clearly stated, including any additional fees or charges. A contractor should include all potential charges to avoid a future dispute. Especially when it comes to large projects, payment methods and structures should be clearly outlined.
What is the 6 essential element of contract? ›
Every contract, whether simple or complex, is considered legally enforceable when it incorporates six essential elements: Offer, Acceptance, Awareness, Consideration, Capacity and Legality. It is critical that all six elements are present—just one missing element can make a contract invalid and unenforceable.
What are the 4 main elements of a contract? ›
There are four essential elements of forming a contract: offer, acceptance, consideration, and intention to create legal relations. Beyond this, the terms of the contract must also be unambiguous, and the parties must have the mental capacity to agree.
What are the 5 principles of contract law? ›
Contract Law - Key takeaways
Five main principles of Contract Law: Offer and acceptance, consideration, intention to create legal relations, capacity, and legality.
What are the 4 C's of contracts? ›
The basic elements of the proposed Contract Managing Model are cost, contracts, claims and communication as shown in Diagram 2.
What are the five contractual obligations? ›
A contractual obligation must meet several key elements to be valid and legally binding. These factors include offer, acceptance, consideration, capacity, legality, and clarity.
Tip. The five requirements for creating a valid contract are an offer, acceptance, consideration, competency and legal intent.
What is a contract checklist? ›
A contract checklist is a list or framework that helps you identify and organise critical parts of a contract. A contract checklist is helpful when creating, analysing, or reviewing a contract. Each process will alter the contents of the checklist.
What are the 6 major requirements of a contract? ›
6 Essential Elements of a Contract
- Offer.
- Acceptance.
- Awareness.
- Consideration.
- Capacity.
- Legality.
What are the four components of a construction contract? ›
Your attorney has a solid understanding of the four major elements that make up a construction contract, and can counsel you during the drafting of your contract.
- Scope Of Work. ...
- Change Order Provisions. ...
- Indemnification. ...
- Payment Provisions.
What are the main clauses of a construction contract? ›
While each project is different, here are some key clauses construction law experts typically recommend including in a construction contract.
- Price Sum. ...
- Payment Terms. ...
- Change Orders. ...
- Claims. ...
- Resolutions. ...
- Termination. ...
- Insurance.
Which are the 6 main options in the engineering and construction contract? ›
Engineering and Construction Contract (ECC)
- Option A: Priced contract with activity schedule.
- Option B: Priced contract with bill of quantities.
- Option C: Target contract with activity schedule.
- Option D: Target contract with bill of quantities.
- Option E: Cost-reimbursable contract.
- Option F: Management contract.
What makes a building contract legally binding? ›
It should detail the work, price, when payments will be made, who gets the necessary building permits, and when the job will be finished. The contract also must identify the contractor, and give their address and license number.
What to avoid when writing construction contracts? ›
Here are what the Smith + Malek team has seen as the most common errors in construction contracts:
- It's not written down. ...
- Both parties haven't signed the contract. ...
- Not all of the terms of the agreement are in writing and in the contract. ...
- The timeline is unclear. ...
- Particular terms aren't defined.
What are the 10 essential elements of a valid contract? ›
The 10 elements of a valid contract are stated below.
- Offer and acceptance.
- Lawful object.
- Agreement not expressly declared to be void.
- Intention to create a legal affinity.
- Free consent.
- The capacity of the parties to contract.
- Certainty of meaning.
- Possibility of performance.
How do you write a simple construction contract? ›
Elements of a construction contract
- Name of contractor and contact information. ...
- Name of homeowner and contact information. ...
- Describe property in legal terms. ...
- List attachments to the contract. ...
- The cost. ...
- Failure of homeowner to obtain financing. ...
- Description of the work and the completion date. ...
- Right to stop the project.