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Drafting a solid contract is the cornerstone of pre-planning your construction project. This part of the process should never be overlooked, as it can lead to disputes and legal issues later. That’s why it’s important to have a construction attorney in Orlando, like our team at The Boutty Law Firm, help you create construction contracts so everyone is on the same page. Learn more about the five vital elements you should include in every construction contract below.

Scope of Work

A detailed scope of work is the heart of your construction contract. The scope should be as detailed as possible so no areas are up for interpretation. The scope of work should be narrowed down into several subsections, including:

Project Description

The project description outlines the entire project, providing a high-level vision for the goals and methods used to achieve them. This section should be supplemented by documents like blueprints, concept drawings, and other relevant materials to help everyone involved with the project understand the overall vision. 

Role Responsibility

The scope of work section should include a detailed description of the parties who will complete the project and their exact responsibilities. It should also provide a recourse if a party fails to complete their assigned tasks.

Schedule of Work

Having an estimated timeframe is vital for your construction contract. Include a notice to proceed date and estimated completion date. Break up the project into attainable milestones and give estimated dates for each phase. Provide lead times from suppliers for materials and equipment, as well as other pertinent details that may impact project completion. This section should also include conditions if the project becomes delayed due to negligence, weather conditions, permits, and holidays.

Specifications

The specification section should explain what materials and techniques will be used to complete the project. Specificity is key so that the entire construction team understands every element.

Change Orders

In addition to a detailed scope of work, your construction contract should include a plan for what happens if the scope of work changes, also called a change order. Change orders are formal requests to alter the original scope. These requests state how the project will be revised or modified and the impact these changes will have on various project elements, such as timeline and pricing. Change orders can be requested for any project element, from changing the flooring type to eliminating a wall.

Lien Warning

Construction workers are entitled to be compensated for their work. When they aren’t, eligible parties may force the owner to pay the wages they are owed by placing a claim against the property. This is known as a construction lien. Lien warnings are required in all Florida residential construction projects for single-family homes and multi-family residences (up to four units) totaling more than $2,500. This warning ensures property owners know that contractors and other parties who provide services at the property can place a lien if they aren’t paid for their labor. The warning also notifies the homeowner that they may be held responsible for payments to subcontractors even if they paid the contractor in full. The wording and specifications for this statement are described in Florida Statute 713.06(2)(c).

Estimated Project Cost and Payment Schedule

Describing the financial aspects of the project is an integral part of any construction contract. Define the payment schedule and acceptable forms of payment. This section should include a detailed list of the estimated project cost, supplies, and miscellaneous expenses, from equipment to meals. You should also define how payments for change orders or other project adjustments will be handled.

Dispute Resolution

The last element that every construction contract should include is a process for how disputes will be handled. Learn more about common types of contract disputes. Disputes can delay the project and increase costs, so it’s essential to include a process for handling these situations in the construction contract. Your construction attorney in Orlando can help you develop a dispute resolution process when disputes arise during the construction phase.

Boutty Law Firm: Experienced Construction Attorney in Orlando

Having a vague construction contract can lead to serious issues. Don’t risk your business and future projects by rushing through this process. Have an experienced construction attorney like Benjamin Shane Boutty help you create a solid construction contract that ensures the validity and viability of your project. With over 20 years in the construction industry, our construction attorney in Orlando will help you get the job done. Call our office at 407-622-1395 or fill out our contact form to schedule a consultation to get started.