A Guide to Understanding a Construction Contract

A Guide to Understanding a Construction ContractBuilding a dream home or watching your ideal project come to life is an experience you have to earn. The daunting tasks of finding the right construction company needs to be fulfilled and then comes the contract. The planning and time that goes into it are often tiring, but if the results are good then all the wait and work is worth it.

After determining who you want to be your contractor, the next step is signing an agreement with the company. This agreement helps align your requirements with their offerings and covers all the legalities.  It is a contract between the contractor and client to repair, construct or demolish something in a specified time frame and predetermined standards. This contract requires the signatures of both parties involved and once signed they are required to follow the terms and conditions set in the contract without any problems. The contract is quite simple to understand once you’ve discussed all the specifications with your preferred contractor.

Important Guidelines to Keep in Mind

Make sure that the contract includes all the necessary details that are required to build or remodel in a specific area. The contract should cover the governing law

A Guide to Understanding a Construction Contract

and jurisdiction and mention the reference that the remodeling or construction is going to be built under. Double check the rules and regulations on your own as well.  Next, thoroughly read the payment schedules and dues that have probably been discussed verbally, but should always be a part of the actual contract. The clause for any changes in pricing and such must be added to it. Look for the clause that covers the policies for solving any dispute that might occur between you and your contractor.


The contract should contain the specifications of the materials that are to be used in the building and the sources it is being gained from. If there are any subcontractors that work with the main constructor, make sure the specifications for they and their company is mentioned in the contract.

The contract should be very clear about the conditions in which the contract may be terminated. The role that the contractor has to play in delivering to your standards should be up to par with the verbally discussed conditions that you kept before hiring the said construction company.

Review the plans and the 2D prints for the project; these should be a part of the contract too. Make sure the visuals are exactly as per your specifications. The key to understanding any construction contract is being aware of the specifications and requirements of your project. Always keep in mind that the written contract should cover all possible areas, including damages and liabilities. Make sure the drawn contract is signed by the right person from the construction company and that they can be held accountable if things do not go as planned.

A Guide to Understanding a Construction ContractThe contract should include specific instructions as to notifying of any changes that might occur during the period of construction. If you have hired the best professional construction company in your area, the contract will cover all the required details.

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