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How to negotiate a construction contract successfully

On Behalf of | Mar 4, 2022 | Contract Law

Contract negotiations are a key part of any Florida construction project. They help to ensure that both parties are aware of their rights and responsibilities while preventing disputes from arising. When negotiating a construction contract, it is important to keep the following in mind:

The scope of work

The first step in any negotiation is to clearly define the scope of work. This includes specifying what work will be done, when it will get completed, and who’s responsible for each task. If there are any areas that are open to interpretation, they should get clarified before work begins.

Your state’s laws

Each state has its own laws governing construction contracts. It is important to be aware of these laws and to ensure that the contract reflects them. This can help to avoid disputes down the road. For instance, in some states, the contractor is responsible for ensuring that the work process is in accordance with local building codes.

The price

It is important to agree on a price that both parties are happy with. The contractor should provide an estimate of the cost of the project and the customer should confirm that this is acceptable. If there are any changes to the scope of work, you may need to renegotiate the price.

Payment terms

You should agree on the payment terms in advance. The contractor may require a deposit before work begins and the customer should specify when they will make the remaining payment. Any late payments can lead to disputes and legal action.

What happens if the project goes over budget?

One of the potential pitfalls of construction projects is that they can often go over budget. The customer should specify what will happen if this occurs. Will the contractor be responsible for any additional costs or will they only get paid for the work that was agreed upon in advance?

These are just a few of the things to keep in mind when negotiating a construction contract. By taking the time to iron out all the details in advance, you can help to prevent disputes and ensure that everyone is on the same page.