After procuring a construction project it is essential to arrange a legal contract between the owner of the project and the contractor. In the construction industry one will come across many construction contract template.
The construction contract template is a document which provides guidelines and details for shaping a new contract. It is a fact that the legal clauses and rules varies with each legislative system therefore prior to any contract it is always essential to get in touch with a legal adviser before making a final deal.
The popular construction contract template usually has eight sections .The sections are created depending upon the requirement of the two parties involved in the deal. In case the building is furnished with furniture and other essential interior decoration then the construction contract template will have around 8 sections. It is essential to understand that a construction contract template cannot be used as legal document .A construction contract template s mostly used for building an original contract.
Some of the common sections in a construction contract template are discussed below:
Payment section mostly deals with the mode of payment and the due dates of making the complete payment.The section also include the consequences if the party fails to make payment within the stipulated time. Some formats includes the consequence of a delayed construction due to late payment is also discussed in details
Plans and Structure covers the details related to structures and responsibilities of the contractors and owners related to the site of construction .The section also includes the responsibility of the owner and the instructions about the arrangement that he has to do prior to the project .The section also includes the details of the responsibilities of the contractors as well.
The Utilities is the next section that includes the utilities that is supposed to be included with the project .The contractor is liable to provide the details of the service and the list of utilities under this clause.
Another important part of the construction contract template is the responsibilities. This section jots down the details and conditions when a contractor will be liable if by any chance the project fails or even collapses. Apart from liabilities and responsibilities this sections also lists the legal issues which do not involve the contractor if at all the structure collapses.
The building possession section includes the time when the owner can have complete possession of the construction and also about the probabilities if the construction period crosses the contract time period.
Apart from the above section the General Terms covers the other requirements and specific details that remained unattended in the above sections.