Construction Contracts: Key Clauses you Need to Know

Are you a Florida Contractor?

It is important to know that a construction contract is one of the most critical parts. A construction contract ensures that you and your clients create terms and conditions that both parties are satisfied with and that will be followed. These contracts are meant to protect both you and your clients. Florida Statute 489.101-489.147 covers construction contracting.

A well-drafted contract establishes the key terms and expectations to be followed by both parties. It also provides valuable legal protection in court should any breach occur. Usually, a good contract is one that contains many key clauses to ensure that each party is satisfied. Every construction project is different, and terms are always created to best suit each individual contract, although there are some general clauses that are typical and recommended to be included in most contracts.

SCOPE OF WORK

In Florida construction contracts, the scope of work covers the duties and responsibilities that each party is contracted to do. This includes terms such as what materials are to be used, quality of work, and contract objectives. This ensures that there is clarity between the parties and prevents any misunderstandings from occurring.

PAYMENT TERMS

Construction contracts should include a clause for payment terms. A payment term clause is used to define the total price the client will pay and when payment is due. It will also include terms regarding who will be paying for certain aspects of construction such as paying subcontractors and suppliers. Payment terms should also include provisions as to who will be liable for additional costs or change orders. Clear and specific payment terms are essential to ensure all parties are compensated correctly and in a timely manner.

SCHEDULING

Scheduling is exactly what it sounds like. A scheduling clause is put in place to ensure a construction project is completed at a pace that is satisfactory to both parties. Scheduling clauses typically include project deadlines, timelines, and project milestones. These clauses usually include how to address potential setbacks and unforeseen circumstances that inevitably occur in construction projects due to things such as bad weather.

RESOLUTION CLAUSE

Lastly, a construction contract should include a resolution clause. While one might hope that a construction project is completed without any problems, the reality is that disagreements occur, so it is always better to be safe than sorry.

These clauses are intended to be used if a dispute occurs to minimize disruptions promptly and effectively to a construction project. These clauses are used to explain and detail how disputes will be resolved.

Typical resolution methods include mediation, arbitration, or litigation.

• Mediation is when the parties come together to solve the dispute that occurred.

• Arbitration is when a dispute is handled by a third party who provides a compromise to the dispute.

• Lastly, is litigation which is when the parties take legal action due to the dispute and settle it in court.

These are just some of the key clauses that a construction contract should include, but there are many more that can be included to facilitate a satisfactory contract.

Consult with our Lawyers

Entrusting RAK Law to draft and review your contracts ensures ironclad agreements that minimize future issues. Our experienced attorneys understand the significance of comprehensive protection for all parties involved. To achieve this, every detail must be covered without any important areas left out. RAK Law excels at crafting contracts that provide full coverage, leaving no room for ambiguity or potential disputes. With our expertise, you can be confident that your contracts will be meticulously prepared to protect your interests. For effective contract drafting, choose RAK Law to handle every agreement. Our attorneys will ensure that all necessary elements are included, guaranteeing the highest level of protection for all parties involved. Trust RAK Law to build a solid foundation for your contracts, setting the stage for a smooth and successful business relationship.

For all your contract questions and needs, please contact RAK Law Firm, PLLC online or at (407) 437-0319.

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