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| Construction Contracts
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Contracts are the legal basis of the construction industry. The lack of detail in contracts is a major source of uncertainty.
It generates disputes in the first place, and it can needlessly delay a subsequent resolution. The contract usually dictates
when the project is complete, when the parties should be paid or not paid, and when a party is in default. It usually expresses
the parties’ intentions concerning each other’s rights and obligations pertaining to a given project. Parties also typically use
the contract to allocate risk. Knowing what constitutes a contract and knowledge of your contract terms and conditions is essential.
The old adage is that an oral contract isn’t worth the paper it’s written on. It is always best to reduce a contract for
construction to a written agreement. Some written agreements may be several pages long, while others may require only a single page.
Form contracts are available at any stationary store and over the internet, but you should exercise caution should when entering into
a standard form contract because it may not contain the protections you require. However, standardized contracts published by
professional associations such as the American Institute of Architects (AIA), Associated General Contractors of America (AGC) or the
American Society of Engineers (ASE) are reasonably fair and complete. These form contracts are unique because they have been
developed by experts who are familiar with the construction industry and its potential problems (although they may favor the party
within the group of the drafter). But, they have withstood the test of time. Because of their extensive use and numerous
interpretations by courts, particularly the AIA forms, they enjoy a certain degree of judicial predictability.
Tesch Law Offices has extensive experience in helping owners and construction professionals draft and review construction
contracts. For assistance with a contract; or for more information contact us.
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