Contractors face a lot of risk on the job, whether they’re performing small residential repairs or undertaking a huge new construction project. Along with work risks, contractors also face liability risks if they’re nor protected by a comprehensive construction contract. These contracts can actually be composed of several different documents, which cover different elements of a job. The Balance explains some of the most important elements of a construction contract so you remain protected.
It’s important for both workers and clients to know how long a specific job is going to take to be completed. This is the purpose of the construction schedule, which lays out the work schedule of work from start to finish of the project. Clauses may be built in that allow the client to take certain actions if the schedule is not adhered to. Contractors can also make amendments to the existing schedule if certain situations arise unexpectedly.
Scope of work
As the name implies, the scope of work explains what’s required throughout the project in great detail. Along with the work to be performed, it also stipulates who’s responsible for the work, how the work will be performed, and what materials will be used. If the scope of work changes during the project, a change order must be issued and agreed upon.
Bill of quantities
While it’s not always included in a construction contract, the bill of quantities can be a useful addition in many cases. It lists costs for material and labor and is often provided during the bidding process so a client can get an idea of the costs. That way everyone knows what to expect before the project even begins.