Not all construction contracts are prepared carefully, leading to risk liability, disputes, risk allocation, in turn, increasing the expenses. Poorly written clauses can affect the efficiency and profitability of a project. Before entering into a commercial construction contract, it’s essential that a landowner knows the type of issues he or she can come across. As a result, he or she can get in touch with the best Property lawyer whenever required. This guest post describes the common issues present in unfair construction contracts.
Securing the Parties’ Performance Provision
The “Securing the Parties’ Performance Provision” explains the credit relationship between the builder and you. It contains the monetary declaration which the builder, and you have agreed to in fulfilling the construction contract performance. It describes the performance bonds and post payments and the work to be carried on by the builder. The provision also shows that you have enough funds for the construction project, ensuring there is no possibility for non-payments.
The issue that you might come across is that the builder might stop working in case the credit allocated to him gets over and till further assurances are made. Besides that, if the contract does not have proper details regarding expansion in the credit, he can do some unnecessary work without your permission. Such issues can be resolved between both parties, but if it’s not solved, the project gets delayed.
Provision of performance duties
A provision of performance duties, also named as a scope of work, explains a clear description of the work between contractor or landowner and you. It includes the things to be carried out by the contractor and how he will handle if an unforeseen situation arises. The issue that you might face here is it contains incomplete descriptions.
Thus, the work gets affected or is incomplete, and issues related to the quality of the work arise. Therefore, you need to approach a lawyer, who will represent your case in front of the court. At times, the disputes consume a long time to resolve, leading to delay in the construction project. To entire prevent such situations, it’s always important to incorporate the specifications clearly. You and the builder must meet the specifications and standards listed in the contract.
Change in the project and orders provision
The change in project and order provision, viewed as two separate provisions, explains the number of changes that can be made by the contractor in the actual plan. In the contract, the process through which you will notify the builder about the changes is included. After that, the contractor finds out the difference in the cost due to the change in the plan.
The common issue faced on some contracts is if the information is not mentioned appropriately. As a result, the contractor can change the contract price being made during or before the construction. A possible way to eliminate such issues is to include the change in the project and orders provision. With that, you can save some money in the long run and receive lower bids from contractors.
The payment provision explains how the payments will be made by you to the contractor. It is because depending on the amount you give; the builder can proceed and complete the task. Therefore, if the amounts are not received on time, the contractor cannot continue. Based on the work, the builder can ask you for money by providing details like their work completion, the items fulfilments, etc. The issue here is the contractor can make their assumption as to how much amount of the line items has been finished.
With that, you do not have any choice but to accept what they say and make the required payment. The issue can be eliminated if the contract has the details stating the builder must assess the completeness of line items. Therefore, you can compensate the contractor and make the payments accordingly. The Building contract lawyers Perth is always there to come to your rescue in case the problem does not get solved.
It explains the course of action through which the builder can claim the delay in some events, but in that, he will not have any responsibility. The delay provisions also state that the amount will be compensated, to the builder for the delay. But in some cases, the contractor takes advantage of it and keeps delaying the project deliberately. That’s why; it’s important to check that the contract is drafted appropriately, stating the events that will only be compensated.
It’s always better to stay away from unnecessary disputes as it increases the costs, and the project gets delayed. But if you come across any such problems, get in touch with WA property lawyers. They are always there to solve the dispute at the earliest so that your construction project gets completed on time.