When an individual hires a construction company for a building or project, a construction contract can ensure that the project is completed according to the individual’s specifications. However, there are different types of construction contracts, so it’s important to know the difference between each one before signing off on a contract.
What are the different types of construction contracts?
A lump sum contract offers a single fixed price for the entire project. Some lump sum contracts offer financial incentives if the project is completed early. The contracts might also contain financial penalties if the business completes the project later than scheduled. A cost plus contract is more flexible and covers the costs of construction whatever they may be. Such contracts might also contain incentives for work that’s completed ahead of schedule.
A time and material contract offers an hourly pay rate that also covers additional expenses. This contract is common for projects where the owner hasn’t figured out all the specifications. Finally, unit pricing contracts cover the cost for the materials and labor used during the construction process.
If an owner or contractor feels that the contract has been violated, they might want to contact an attorney with experience in construction law. Legal action might be necessary to ensure that the work gets completed and the workers are fairly compensated.
Where can individuals get assistance during contract disputes?
During the building process, disputes can arise among the builders, suppliers, lenders and property owners. This might involve contract violations, defective materials, wage conflicts and other issues. If an individual is caught up in a construction-related dispute, they might find it beneficial to hire an attorney. An attorney may be able to help them resolve the issue and seek compensation for the damages that the client suffered during the construction project.