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Published: February 14, 2007
The construction of contracts is probably not the type of building on the minds of most contractors, but they are essential for any project to get off of the ground. Detailed contracts can help contractors avoid miscommunication on a project, which can cost money by delaying projects, even stopping them altogether.
Construction contracts work like any other legal document and are designed to protect both the contractor and the buyer.
Keeping construction contracts organized will ensure that contractors will stay actively in business instead of stuck in the office with paperwork, or in court because of a misunderstanding. The usefulness of construction contracts goes beyond showing an organized face to a prospective client. Construction contracts cover the contractor legally, protecting from non-payment of services.
Simple construction contracts outline the work, a completion date, price, and other relevant information. Construction contracts also serve as a written record of agreement. This type of contract is the first type of form most contractors need. For contractors unsure of what to include in a contract, there are a variety of sample construction contract forms available to study and learn from.
Sample construction contracts can help contractors get a sense of the layout, language, content and payment terms that are in construction contracts. These construction contracts include clauses regarding availability of utilities for use by the contractor, and points out the customer's responsibilities with gaining permits. All of these details in construction contracts can keep a project moving if they are understood early, but if there is confusion during the project, these details can stall or stop the project. Sample construction contract forms can be found at Steve Casey Design, Law Depot, and The Associated General Contractors of America (AGC of America) website. Expect to pay $10-$35 for a basic contract.
Free construction contract forms are another great alternative for contractors. Many websites provide free templates of construction contracts that can be downloaded. Construction Business Forms has free construction contract forms available if contact information is entered, presumably to join their mailing list. Make sure any form that is used has been reviewed either by a lawyer, a trusted contractor organization, or a trusted vendor. Most forms for construction contracts will have a note or seal of approval on them or it will be posted on the vendor's website.
To keep as efficient as possible, investigate into any construction contracts software for customization abilities. User-defined categories, which are built into software for customization by the consumer, can assist in building reports and forms by adding a contractors' own special fields. These special fields can be based on anything imaginable: additional sales tax percentages, administrative fees, additional legal or other clauses are just a few. The administrative, legal and accounting setups of all companies differ, so be sure there is a way to define those differences.
There may not be a need for customized fields early on in the life of a contracting business, but think of growth. As companies grow, their services, payment terms, and legal issues change. Consider how much money is currently lost with the time taken for paperwork and multiply that amount by the growth in the workload. If it is feasible to make an investment in software, be assured that someone will be dedicated to learning how to utilize, and keep it updated to the fullest extent.
Buy and use what is needed if there isn't room to plan for growth. At the very least, have basic construction contracts and during any down time, research next steps to better organize the administration of contracts. Any time spent in choosing forms or software for construction contracts will be returned in open time to work on more projects, market, and plan the business. Efficiency and organization always keep expenses down, profits up, and businesses running like a well oiled-machine.
Sources:
About Contract Documents. AGC of America. 2007. 29 Jan. 2007 <http://www.agc.org/page.ww?section=Contract+Do cuments&name=About+Contract+Documents>. Construction Contract. Socrates. 2004-2007. 19 Jan. 2007 <http://www.socrates.com/contractor-forms/contr acts-agreements-and-liens/Construction-Contract.as />Free Construction Business Forms. Construction Book Express. 2004.19 Jan. 2007 <http://www.constructionbook.com/xq/ASP/qx/form s.htm>.
Design and Construction Contract. Casey Design-Custom Woodwork. 1999-2006. Casey Design, Inc. 29 Jan. 2007 <http://www.stevecaseydesign.com/sample_contrac ts.htm>.
Service Agreement. LawDepot.com. 2002-2007. 29 Jan. 2007 <http://www.lawdepot.com/contracts/serviceagree ment/>.
Introducing Construction Suite 2007. United Design. 2003-2007. UDA Technologies, Inc. 19 Jan. 2007 < http://www.uniteddesign.com/index.html>.
Construction contracts work like any other legal document and are designed to protect both the contractor and the buyer.
Related Articles
Simple construction contracts outline the work, a completion date, price, and other relevant information. Construction contracts also serve as a written record of agreement. This type of contract is the first type of form most contractors need. For contractors unsure of what to include in a contract, there are a variety of sample construction contract forms available to study and learn from.
Sample construction contracts can help contractors get a sense of the layout, language, content and payment terms that are in construction contracts. These construction contracts include clauses regarding availability of utilities for use by the contractor, and points out the customer's responsibilities with gaining permits. All of these details in construction contracts can keep a project moving if they are understood early, but if there is confusion during the project, these details can stall or stop the project. Sample construction contract forms can be found at Steve Casey Design, Law Depot, and The Associated General Contractors of America (AGC of America) website. Expect to pay $10-$35 for a basic contract.
Free construction contract forms are another great alternative for contractors. Many websites provide free templates of construction contracts that can be downloaded. Construction Business Forms has free construction contract forms available if contact information is entered, presumably to join their mailing list. Make sure any form that is used has been reviewed either by a lawyer, a trusted contractor organization, or a trusted vendor. Most forms for construction contracts will have a note or seal of approval on them or it will be posted on the vendor's website.
To keep as efficient as possible, investigate into any construction contracts software for customization abilities. User-defined categories, which are built into software for customization by the consumer, can assist in building reports and forms by adding a contractors' own special fields. These special fields can be based on anything imaginable: additional sales tax percentages, administrative fees, additional legal or other clauses are just a few. The administrative, legal and accounting setups of all companies differ, so be sure there is a way to define those differences.
There may not be a need for customized fields early on in the life of a contracting business, but think of growth. As companies grow, their services, payment terms, and legal issues change. Consider how much money is currently lost with the time taken for paperwork and multiply that amount by the growth in the workload. If it is feasible to make an investment in software, be assured that someone will be dedicated to learning how to utilize, and keep it updated to the fullest extent.
Buy and use what is needed if there isn't room to plan for growth. At the very least, have basic construction contracts and during any down time, research next steps to better organize the administration of contracts. Any time spent in choosing forms or software for construction contracts will be returned in open time to work on more projects, market, and plan the business. Efficiency and organization always keep expenses down, profits up, and businesses running like a well oiled-machine.
Sources:
About Contract Documents. AGC of America. 2007. 29 Jan. 2007 <http://www.agc.org/page.ww?section=Contract+Do cuments&name=About+Contract+Documents>. Construction Contract. Socrates. 2004-2007. 19 Jan. 2007 <http://www.socrates.com/contractor-forms/contr acts-agreements-and-liens/Construction-Contract.as />Free Construction Business Forms. Construction Book Express. 2004.19 Jan. 2007 <http://www.constructionbook.com/xq/ASP/qx/form s.htm>.
Design and Construction Contract. Casey Design-Custom Woodwork. 1999-2006. Casey Design, Inc. 29 Jan. 2007 <http://www.stevecaseydesign.com/sample_contrac ts.htm>.
Service Agreement. LawDepot.com. 2002-2007. 29 Jan. 2007 <http://www.lawdepot.com/contracts/serviceagree ment/>.
Introducing Construction Suite 2007. United Design. 2003-2007. UDA Technologies, Inc. 19 Jan. 2007 < http://www.uniteddesign.com/index.html>.
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