Laws.com announced that the site's free commercial contract templates now includes Construction Contract Agreement.
NewYork, NY (PRWEB) March 21, 2013
Laws.com announces the launch of Construction Contract Agreement template in its legal document section. The construction contract agreement can be downloaded and used at free of cost. Construction is a multifaceted process which involves time, money and labor and the risks related to the business are numerous. Many a contracts will be involved in a project. There is always a possibility of things going out of expectations. A well documented agreement becomes a necessity under these circumstances for legal requirements.
During the bygone years, there was an opinion that contracts involved in the construction arena should be adaptable to standardization and companies promoted ready-made packages for both residential and commercial purposes. American Institute of Architects and numerous associations had well defined examples and forms for the use of their memberships.
After 2007, the AIA gave a face lift to their set of forms; a web site was introduced combining the work of approximately twenty nationally recognized construction companies. Representing the entire class in the construction industry, the website provided standardized forms and contracts. Still the construction field hasn’t entered a serene atmosphere.
In every contract parties will try to impose provisions for their advantage where their responsibilities and liabilities are limited. The written language of each agreement has to be weighed against obligations of obscure warranties, environmental necessities and limitations of the Federal and State laws concerned with the project.
The contents in the contract should be able to foresee and prevent disputes in advance in all facets of construction especially regarding the financial responsibilities like, What if there is a failure in the fund flow, failure to secure easements, warranting the specifications and plans, understanding the document, evaluating and allocating damages for impediments in the construction, terminating a party for poor quality of work, making mistakes in designs which require extensive change orders etc.
Decisions have to be taken on the overall construction arrangement suiting the situation. Decisions are required in the cases of various parties involved in the contract, in most cases the parties prefer a contract between the owner and the general contractor and a separate one between the general contractor and the sub-contractors.
There are different types of contract, which includes:
Lump Sum contracts, where one party agrees to provide certain services for an agreed price. The other party agrees to pay that amount upon completion of the work. The owner pays an agreed amount to the contractor, and the contractor takes all the risks involved in the construction process whether its loss or gain.
Unit Price contracts, where a sum will be given to the contractor for each portion of the work undertaken. The sub contractor has to bear the loss if any.
Cost plus agreements, this will define the profit of the general contractor and the estimated cost of expense of construction. If the expenses come below the estimated expenses, the owner is the beneficiary. The general contractor enjoys the security, but he has to be a real professional at the site. Even if the expenses exceed the estimated amount the owner has the satisfaction that the project is going to meet his standards.
If the agreement poses any problems, never hesitate to seek the help of Laws.com. Your problems will be solved by experts in the field of agreement. To download the agreement visit the construction contract template page.