Why We Need Construction Contracts

                                                      

Everybody wants to be certain to get the right thing or outcome in what they have invested on. Whether it is a major or a minor construction for either residential or commercial project, you expect the contractor to execute the exact details of the plan, right? While the contractor also expects to get paid with the full amount as agreed upon. Thus, the importance of Construction Contracts.

These legal contracts are actually a requirement by law whenever a construction work is assigned to other party. Construction Contracts, like any other contracts contains the complete details of the whole deal.

Commercial or residential contracts basically contain almost the same details. Although Commercial contracts are more professional and may contain a bit more details than residential contracts.

Listed below are the reasons why we need Construction Contracts:

1. With a contract at hand, it will provide you and the contractor a sense of confidence that whenever disputes arise you have a document that will protect you from any legal issues.

2. As the owner or client, this piece of legal document will protect your interest from any alterations from the original plan.

3. As the contractor, this will also protect them from implementing extra works beyond what is stipulated in the contract.

4. Both parties are always protected in terms of collection and payment. Owners will not be billed any extra payments but only the amount stated in the contract, unless stipulated in another contract. Contractors are also assured of getting paid in full amount after the completion of the said project.

5. You as the client will also have peace of mind that the design and other details in the plan are accurately implemented.

6. The duration of the construction period is also stipulated in the contract. Hence, you are assured that the project will be completed on the date as planned.

7. The Contract is signed by both parties with witnesses and should be in the presence of a lawyer or lawyers of both parties as agreed on the terms and conditions stated in the said construction contract.

To simply put it, all details as agreed by both parties are outlined in the contract in full details which are bound by the provisions of the law. Any detail not implemented  intentionally that lead to a vicious dispute between parties during the duration of the contract are liable to face any legal complaints filed to him.

With this, both parties should see to it that every detail enumerated in the contract are followed to avoid breach of contract as it is punishable by the law of the state and country.

Contracts are bound to be followed as there are guidelines and laws that protect each party from getting cheated or abused. The law sees to it that the contract will be strictly obeyed and followed according to their provisions, as both parties have agreed upon. Non-compliance of a contract by any party involved will mean that they have to face the consequences provided in the law of the land.

Construction contracts or any other contracts will be an advantage to the parties involved. It will be an assurance that both parties will cooperate to successfully finish the construction project. No one is favored over another.

That being said, it is very important that the client fully understand the context of the contract and the terms used before signing them. He should consult an expert for a translation on the terms used and what other possible details that should be included in it. Nothing should be left out or missed to avoid having one party getting an advantage over the other.

The law respects what is written in the contract that is signed by both parties. So, never sign a contract that you have never read or don’t understand, or you’ll regret about it. Ignorance of the law excuses no one. 

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