Construction companies in Minnesota may operate on numerous projects and work with a variety of parties every year. Each new project may come with its own set of responsibilities and potential risks. Finding ways to safeguard your company’s interests in all projects can prove a challenging feat.
Construction contracts could help provide the necessary protection. Being thorough when drafting such agreements may prove integral to helping protect your business endeavors. While the topics to cover in these contracts may vary at times, there are certain factors that might be helpful to include in all your construction contracts.
Taking a thorough approach to drafting construction contracts could prove beneficial in various ways. Some examples of topics to address in all contracts might include:
- Scope of work: One of the first topics to cover in each contract may pertain to defining the scope of the work. Being thorough with this topic could help mitigate various project risks.
- The parties: Including information on all parties involved in the project and the responsibilities and obligations of each, in turn, could also prove imperative.
- Project schedules: It may also be vital to address project schedule topics, such as expected time of completion for tasks and pay schedules, and to cover the topic of unexpected delays.
- Addressing exclusions: Studies indicate that taking steps to address project exclusions could also help improve relations between the parties involved and stave off conflict by limiting confusion.
- Resolving disputes: Construction disputes can arise under various scenarios, and including terms regarding dispute resolution may help provide peace of mind and protection to all parties involved.
It may also be helpful to address the topic of change orders and the steps to take should circumstances prompt a need for change to the scope of work or lead to additional operations and expenses.
With numerous vital topics to address and difficult decisions to make, drafting construction contracts can be a stressful and intimidating task. Knowing some vital topics to cover in all contracts could help alleviate some of your stress and place you in a better position in which to make informed decisions about your options. Seeking guidance in drafting contracts that best align with your interests and needs could help you better prepare to safeguard your company’s future and approach each new project with confidence.