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Look for These Issues Before Signing With a Construction Company

On Behalf of | Oct 17, 2024 | Construction Law | 0 comments

When property owners are about to sign a contract with a construction company, they must carefully review the document to avoid future disputes. Florida law provides guidelines for drafting such documents, but contract issues can still arise. 

If you are at the signing phase before starting a construction project on your land, carefully consider these common contract issues before signing.

Scope of Work and Timeline

The contract should clearly define the scope of work and the timeline for the project. Vague descriptions of tasks or missing deadlines can lead to misunderstandings and project delays. Ensure the contract outlines every detail of the required work. Material inventory, labor, and start and finish dates should all be present in writing upfront. This will help you hold the construction company accountable for completing the project on time.

Payment Terms and Costs

The contract should clearly state the total project cost, payment schedule, and any potential additional expenses. Avoid contracts that allow the company to request payments without providing a breakdown of costs. Make sure there are clear terms for payment upon the completion of certain phases to avoid overpayment before project completion.

Permits and Compliance With Local Regulations

Florida building standards require construction companies to obtain proper permits before starting any work. The contract must address who will handle the permits and ensure the project complies with local zoning and building codes. Failing to address these details can lead to costly fines or even project shutdowns.

Warranties and Liability

Look for warranty terms in the contract to guarantee that the construction company will fix any issues with the work. The warranty should cover both labor and materials. Additionally, the contract should clearly define the company’s liability if they cause damage to the property during the project.

Termination Clauses and Dispute Resolution

It is in your own best interest to have access to a termination clause that outlines the steps to end the agreement if necessary. The contract should also address dispute resolution terms. Having an outlined arbitration or mediation process to follow can help you avoid costly court battles.

Construction projects involve significant investment and commitment. Contract disputes and one-sided agreements can undermine the time and effort you put into the property. By addressing key issues before signing a contract, you can avoid many potential problems during and after the project.

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