Once you have completed the initial phases of your project development plan, site plan, specifications, drawings, financing and thoroughly evaluated the proposals, you maybe ready to select the successful firm to orchestrate your building plan. While there are many types of contracts, you will want to consult with legal counsel to assist you in preparing a contract. While this is not an exhaustive list, these are just a few of the items the contract document should do:
- Define what is included in the contract documents, specifications, addenda, change orders, etc.
- Define responsibilities of all the parties to the contract.
- Define the contract sum.
- Define how subcontractors and material suppliers are handled.
- Define how separate (but related) contractors are to be handled.
- Determine which state law shall govern the contract.
- Determine how testing procedures will be handled and who will pay.
- Determine how disputes are to be settled such as the use of arbitration.
- Define how and when payments are to be made.
- Define insurance and bond requirements.
- Determine how to deal with correction of defective work.
- Determine how the contract may be terminated.