Excessive scope creep will hurt profit margins and give rise to payment disputes, so keeping the scope of work under control should be a priority.
Most Recent Posts on Construction Contract
By using the completed contract method for construction accounting, businesses benefit from tax deferment. It won't be an option for all projects, though.
A thorough set of construction specifications helps project participants understand what's expected of them and ensures customers get what they pay for.
A construction contract can include a multitude of documents. Understanding what these documents are and how they affect the agreement is vital for success.
Changes occur on every construction site, but when changes would seriously alter the original plans, the cardinal change doctrine can provide some relief.
Change directives force contractors to accept changes that they aren't on board with. As a result, they can lead to poor relationships or even disputes.
The scope of work might be the most important part of a construction agreement. A clearly defined scope establishes expectations & helps to avoid disputes.
Mistakes made while contracting which alter the very foundation of the agreement might not be set in stone. Sometimes, that might amount to a unilateral or even a mutual mistake,...
Under a unit price contract, contractors and subs are paid for the actual quantity of each line item, or "unit" of work. Often, these contracts will state an estimated amount...
Left unchecked, consequential damages could create extensive liability for construction businesses. Construction contracts should limit or at least clarify them, when possible.