Key contractual clauses
Here is s short list looking at some key clauses that might be found in a construction contract:
- Scope of work : This clause clearly outlines the project's objectives, deliverables, and specifications. It's essential to prevent "scope creep," where additional tasks are added without proper compensation.
- Payment terms : This clause specifies how and when payments are made throughout the project. It should detail payment schedules, retainage, and how to handle progress payments or milestones.
- Change Orders: This clause outlines the process for making changes to the original scope of work. It should address how changes are approved, documented, and how costs are adjusted.
- Dispute resolution : This clause specifies the process for handling disagreements. It may involve mediation, arbitration, or litigation, and should be tailored to the specific project and jurisdiction.
- Termination Conditions : This clause defines the conditions under which the contract can be terminated by either party. It's crucial for protecting rights and managing risk in various scenarios.
- Insurance and Liability : This clause clarifies who is responsible for risks, delays, and damages on the construction site. It's essential to ensure adequate insurance coverage and liability protection.
- Force majeure : This clause addresses unforeseen events that prevent a party from fulfilling their contractual obligations. It should be carefully drafted to cover various scenarios like pandemics or natural disasters.
- Delay and Extension of Time (EOT) : This clause deals with project delays. It defines what constitutes an excusable delay and how extensions of time are granted.
- Variations: This clause addresses the process for making changes to the original scope of work or the contract.
[edit] Related articles on Designing Buildings
- Addendum.
- Alternative dispute resolution.
- Articles of agreement.
- Common law.
- Competitive procedure with negotiation.
- Condition.
- Construction contract.
- Construction law.
- Contract administrator.
- Contract negotiations.
- Contract strategy.
- Contractual right.
- Delay damages.
- Disallowed cost.
- Escalation.
- Essentials of a contract.
- Excepted risk.
- Extension of time.
- Form of tender.
- Hybrid construction contract.
- Key dates.
- Liquidated damages.
- Loss and expense.
- Modifying clauses in standard forms of contract.
- Named specialist work.
- Negotiated Procedure without Prior Publication NPwPP.
- Outturn cost.
- Payment for extra work.
- Pre-contract management.
- Proprietary information.
- Quantum meruit.
- Right to payment.
- Supply chain management.
- Variation.
- Z clauses.
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