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Notes when drafting and signing a construction contract

08-07-2021

The construction contract is a mandatory document signed between the investment owner and the construction contractor. In terms of legal and benefits, a construction contract has an indispensable meaning when starting cooperation between the investor and the contractor, which directly affects the rights of both parties. Therefore, we need to be carefully concerned about the notes when signing a construction contract.

1. Contract content

When signing the document, both parties must determine the content of the contract. This means they must clearly know their work, rights, and duties to have proper contract performance and avoid unnecessary debates and disputes after signing. 

 

Contract content

The content of the construction contract must be drafted clearly, specifically in terms of bad cases, the commitment policies, the rights of two parties. Contract content must be related to the requirements of the two parties to prevent needless controversies or contradictions.

2. Acceptance of construction works

Acceptance of construction works

The acceptance process is an utterly crucial stage of evaluating the quality of the contractor. This process must ensure the following categories:

  • First, in terms of initial quality and the standards, we should check whether it was completed correctly and building categories were completed or not.
  • Acceptance subjects are people who are responsible for the construction acceptance. Normally. The investment owners carry out this process. Sometimes, the consultant or contractor can conduct this acceptance process to give opinions on whether to repair or change any things or not.

3. Working deadlines

Working deadlines

When starting to sign a construction contract for pre-engineered buildings (PEBs), factories, warehouses, etc., businesses must pay attention to the construction time to ensure the work completion and avoid problems or interruptive factors. Here are some notes to keep in mind:

  • The deadline for completing the work is an indispensable factor in determining the reputation of the construction contractor.
  • Notes to the notices required by the parties
  • Paying attention to notices of both parties to show respect and responsibility for the work of both parties.

4. Guarantee and payment

Guarantee and payment

The contractor's guarantee ensures the payment and warranty for the work. This guarantee is vital because it is closely related to the payment and expenses of the project during construction. Additionally, it is also closely related to the process of performing the work and the terms of the warranty for the work.

5. Carefully consider the value of construction

The investment owner will pay in advance a part of the total value of the signed contract to ensure the initial work and preparation of construction such as materials, design works, etc. The value of the agreement will remain unchanged until the work is completed.

6. Carefully check the machines

Checking machinery problems is an indispensable step when preparing for construction. Investment owners need to conduct a review of machinery and equipment such as frame, scaffold, etc, before putting them into construction. This will ensure the completion time, productivity, and safety of workers at the construction site.

7. Review construction drawings

Review construction drawings

Before signing the contract, drawings and designs must be approved by investment owners. In addition, there are a number of factors that owners should pay attention to during the construction process, such as technical staff, workers, etc.

8. Specify the construction progress

There are requirements for the construction contractor to complete within the specified time. These requirements show the commitment and responsibility of the contractor if the project is not implemented correctly. In case of violation, the contractor party will be responsible for compensating damage.

9. Do not change the operative provisions in the contract 

If the contract is accepted and signed by both parties, we can not modify or change the contract’s content. It will remain until the work is completed. Both parties should read carefully before signing, and if there are any questions or unsatisfactory things, they must ask again to negotiate, avoiding the situation of "The die is cast”.

10. Cost control

When owners invest in a project, it is imperative to control additional costs in the work such as electricity, water, and a number of other incurred costs during construction. Besides, costs such as renting sidewalks to place materials, or workers’ living expenses are also considerable problems.

Cost control

Other additional costs are also indispensable, which is also part of the owners’ responsibility for employees. For instance, owners are the ones responsible for purchasing construction insurance for laborers. In addition to the costs mentioned above, the contractor and the investment owner need to take into account economic losses or unexpected risks when conducting construction.

With the above information, BMB Steel hopes to help you understand the unique and necessary notes when signing contracts for city construction. Hopefully, this knowledge will be helpful to businesses to serve the company's intentions and plans.

 

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