Contract: Construction Contract Basics

Construction Contract Basics

Construction contracts can be a very useful tool that every builder must know to perfection. There are different types of contracts, tips and guidelines that must form part of every construction contract. Contracting agents are a vital part of the construction industry, but following these guidelines you can become one great contracting leader.

1
Contract Documents

Contract Agreement
Contract Agreement. Photo Jarmoluk

The contract documents are one of the most important pieces that will guarantee of a successful project. No matter what you're building, having a solid contract represents one of the first steps toward  the success of your project. This list contains the documents that typically form part of every construction contract. There also are numerous other exhibits or forms that you can use in combination with the documents listed below. More

2
Contract Types

Provide your subcontractor list
Provide your subcontractor list. Photo Stevepb Pixabay

There are several types of construction contracts used in the industry, but there are certain types of construction contracts preferred by construction professionals. Construction contract types are usually defined; by the way, the disbursement is going to be made and specifies other specific terms, like duration, quality, specifications and several other items.  More

3
Union Contracts

Performance bond
Performance bond cost between 1 and 2 percent. Photo Pixabay

A labor union contract is a powerful agreement between parts to secure your rights in the workplace. According to labor law, contracts represent the minimum compensation and benefits for employees. An employer may offer rights and benefits that exceed the minimum standards set in an existing contract. Here is a list of common parts your contract must have. More

4
Contract: Direct Hire or Sub-Contract

Negotiating skills
Negotiating skills. J Rodriguez

Subcontracting can offer you some warranties and hiring someone directly will require additional efforts from you. But what is the best decision? Tough question and harder to answer. Sometimes you will ask if it is better to have the job subcontracted or to hire someone directly to do the job.  More

5
How to Become a Successful Contract Negotiator

Construction bids
Know how to win bids. Photo J Rodriguez

The time has come for you to sit down with union representatives or with the project stakeholders and you are wondering what to do. Well, a negotiator should have some characteristics and skills that will allow you to become a great negotiator and achieve your goals. Negotiations can actually make things even worse than when it started, so these tips will help you on closing that gap, achieving your results without hurting anyone More

6
What is A Construction Contract Agreement?

Hold harmless agreement
Hold harmless agreement protects you. Photo pixabay

 A construction contract agreement is the document that sets a date and specifies which parties are going to participate in the construction process. Usually the contract agreement is executed between the Owner of the project and the contractor or supplier that is providing the requested services and contains several sections of clauses defining the scope, terms and conditions of such agreement. More

7
Differing Site Conditions: Protecting Against Differing Site Conditions

Workers on construction site discuss.
Reza Estakhrian/Getty Images

 Differing site conditions can increase construction costs, and can also delay the projects schedule. Normally, you will find differing site conditions during the first weeks of the project, affecting the complete project schedule and causing unanticipated delays and problems. Now let’s go over what contracts can do for us and learn the most typical differing site conditions items. More

8
Steps to Win Federal Contracts: 13 Steps to Win Federal Government Contracts

Union workers
Great skills are needed. Photo Official U.S. Navy Imagery

13 Easy steps on how to secure construction contracts.By doing some research in the federal government, you will know if the service offered has room in any of the federal agencies. The service is free and can be accessed at the Federal Procurement Data System (http://www.fpds.gov ) website. This website will provide information from government contracts, specifically the agency that requested the service, the amount awarded, and the effective dates of the contract.

9
Escalation Clause on Construction Contracting

Steel framing
Steel framing. Photo FSNorthern region Flickr

Escalation clauses have been used in construction contracts regularly. Escalation clauses are typically included on large construction projects, where the job might exceed one year. Recent economics changes due to gas and oil prices could introduce contract escalation clauses even on small and medium size projects. If done properly, they will protect you from the inevitable bump in prices; otherwise you might end up with possible legal problems. More