Construction law is a specialized area of law that deals with the rights and obligations of all
parties involved in a construction project. It is crucial to understand how construction law affects
your renovation projects.
Among the various clauses that can be included in a construction contract for your renovation
project, the following are some key clauses to consider while signing one:
Scope of Work or Statement of Work
The scope of work may be the most crucial aspect of a construction contract. It should make
the contractor’s or subcontractor’s expectations clear. Defects, payment conflicts, and project
delays are all possibilities without a properly defined scope of work.
Scope of work should include the following six components:
● What services are you proposing to provide in particular?
● What services will you refuse to provide until you are paid more?
When writing the SOW, keep it simple. Avoid using clichés and acronyms, and make sure you
spell out any terms, conditions, and compliance duties. Provide a process for determining if all
requirements have been met that is consistent, and avoid making assumptions. If any
modifications are performed, they must be specified in the scope of work.
Overview of the Project
A brief statement that includes an overview of the project, a list of main objectives, and a brief
explanation of the project.
Explain your project in broad terms, leading with the location and entire project objectives. Then,
create a greater model of who will be executing on the renovation or construction project and
what subcontractors you’ll need to recruit.
And consider how different types of subcontractors will overlap during the project and how their
schedules would affect everyone involved. Setting down the project on a granular level by what,
when, and who will help in understanding the scope of work.
Deliverables and Timeframes
This section should include a list of all anticipated set targets that must be met over the project’s
duration. How long will it take for each target or milestone? What are the potential roadblocks?
Another Key Element of the Construction is Price
This is an element in a construction contract where there should be no ambiguity. There should
be not misunderstanding between the cost of such services as well as the cost of services that
are outside the scope of the project. This component of the contract should also explicitly state
the payment schedule, the amount owed, and the payment terms conditions.
Schedule of Payments
Payment methods and procedures should be explicitly stated, especially for major projects.
Setting up a payment plan, such as monthly installments, should, for example, include due
dates. The contract may also specify how the payments will be received, such as via credit card,
cashier’s check, online payment, or automated draft.
Timeframe of the Project
A very well construction schedule demands meticulous planning. Everyone in the project should
have easy access to any updates.
Construction phase timetables keep everyone up to date on the project’s progress, reducing
disagreements and setbacks.
Document list and Drawings
This section of the contract agreement contains a list of all contract documents. This checklist
can include drawings, exhibits, specifications, and extra conditions.
A set of sketches or blueprints should be included in every renovation or building project.
Drawings make a brief overview of the entire project. Before any building operations begin, the
architect or construction manager should give these to the contractors.
Legislative Protection From Lien Law
Lien rights are the rights granted to construction project contractors to issue a mechanics lien if
they are not paid.
If your contractor fails to pay material suppliers, subcontractors, or sub-subcontractors, the
notice holds you responsible for their payment. It basically allows those parties to put a lien on
Your property to cover any unpaid services. In these situations, you should consult with
Construction law experts to learn how to protect yourself from liens in your contract.
Dispute resolution clause/Provision for resolving disputes
All the construction contracts should have dispute resolution clauses. Construction contracts
with many operations occurring under one contract are more prone to problems, necessitating
the careful structuring of dispute resolution procedures.
A seamless conflict resolution process is advantageous to contracting parties in order to reduce
the amount of time, money, and effort required for dispute resolution. The cost of a
disagreement can sometimes exceed the cost of the dispute itself.
Insurance coverage statement
All contractors should have existing insurance policies that cover both accident and workers’
liability insurance. A copy of the insurance binder, as well as insurance binders for any
subcontractors the contractor is expected to recruit, should be supplied as part of the
A written contract or contracts should be included in any renovation or building project of any
kind. If you are entering into or considering entering into a contract for a construction project,
you should seek legal advice from construction law experts.