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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