Contract
A legally binding agreement between two or more parties outlining the terms and conditions for a construction project.
The contract defines responsibilities, payment terms, and the project scope, setting the foundation for all project activities.
Used in a sentence
Before any work can begin, the contract must be signed by all parties involved.
Synonyms/variation
Agreement
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Understanding Supplementary Conditions on Construction Contracts
No two construction projects are exactly alike — and the same goes for construction contracts. Even when using a standard contract form, owners and contractors sometimes use supplementary conditions to shape the contract documents to fit the project at hand better. Supplementary conditions may add additional information that isn’t included in standard contract terms, alter […]
A Straightforward Guide to Construction Contract Review
Construction contracts are like the glue for the project team. They’re the ties that bind the working relationships and goals for the project, containing information about responsibilities, liabilities and processes that govern a relationship between construction stakeholders. Despite their importance, contracts are long, and project team members are busy — so it’s easy to understand […]
Escalation Clauses in Construction Contracts: When and How They Apply
In construction contracts, an escalation clause allows for the escalation of a certain price for labor or materials to be used in a construction project. This type of clause is most commonly used to account for the potential fluctuation of material prices throughout the life of the project. It safeguards the contractor, allowing for adjustments in […]
Scope Gap: Addressing Ambiguous Project Requirements
To turn contract documents into an actual building, every construction project requires stakeholders to complete certain items of work. Ideally, the scope of work outlines those items and clarifies who’s responsible for each of them. But if the general contractor (GC) doesn’t neatly align the scopes of work from various specialty contractors, the project can […]
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