IMPORTANT PROVISIONS TO LOOK OUT FOR IN A CONSTRUCTION AGREEMENT.
Updated: Mar 28
A well-drafted construction contract is essential for all construction projects. It protects both the contractor and the owner by outlining their rights and obligations. Therefore, it’s vital to ensure that all the necessary clauses are in place to avoid disputes, conflicts, huge financial losses and ensure a successful construction project. Based on my experience working on construction contracts for more than 15 years, let us explore a few key provisions that should be included in your contracts.
Scope of Work
The scope of work in a construction agreement typically includes a detailed description of the work to be performed by the contractor. This must include the project description and deliverables. It must also specify the materials and equipment required for the project, including any specifications or standards that must be met.
A detailed scope of work outlines the technical specifications for the work to be completed, including any engineering or architectural requirements and site-specific requirements related to working in a specific location, such as zoning or building codes.
Health and safety requirements must also be detailed, including any regulatory requirements and risk management procedures.
Overall, the scope of work in a construction agreement should provide a detailed description of the work to be performed, the timelines for completion, and the expectations of both the owner and the contractor
No project is perfect, hence there is a possibility that variations may occur. A variation is a change to the original scope of work defined in the agreement by way of addition or omission. To avoid disputes, it is essential to include clauses in your agreement regarding identifying variations, instructions for variations, and valuation of variations.