A well-written construction contract can serve two purposes; it can serve as a document that will give the client confidence in that they are dealing with a reputable company and also give the contractor confidence that the client will be honor-bound to abide by everything set forth in the agreement, such as schedules and payments.
When preparing a construction contract for an upcoming project, it should represent the commitment set forth by the client and the contractor and can be written by either party, although it is commonly written by the contractor. A contract can be written with the bias toward the client or biased toward the contractor and should be carefully read/understood by both parties. It should be a contract that is enforceable by the laws of the state where the venture/project is to be undertaken and that fits the job precisely, in order to avoid potential lawsuits and by the penalties imposed by the state and federal law.
Unless a person acts as their own contractor, a general contractor must be hired to oversee a project. The general contractor will then initiate appropriate contracts between themselves and the subcontractors. The subcontractors include concrete masons, electricians, plumbers, and all the other contractors involved in the construction of a building/project. As with the general contract, the wording and agreements of the subcontract must be clearly understood by both parties.
Whether a contract is a general contract regarding a commercial or residential job or is a subcontract agreement, all potential disputes should be considered and put forth/settled beforehand in the contract. It should also include the warranty agreement.
In some cases, a construction contract should be drawn up by an attorney who is knowledgeable in this area. In most cases, due to the Internet, there are numerous web sites offering free and/or reasonable fees for all types of construction contracts that can be prepared by either the contractor or the client.
During the process and at the end of a project, either/both parties and the subcontractors will be thankful that a well-written construction contract is in place to set forth exactly what is expected of everyone.
See a sample contract:
http://www.dhca.state.vt.us/VCDP/GMG/WORD/CONSTRUC.doc
Website for all types of contracts:
http://www.uslegalforms.com/contractors/
More websites to investigate:
http://www.abcaforms.com/index.html
http://contracts.onecle.com/type/56.shtml