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Video Guide on Building and Renovation Contracts management

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Commonly Asked Questions about Building and Renovation Contracts

Basic types of construction The four main types of construction are: residential construction, commercial construction, industrial construction, and infrastructure construction.
The contract should describe, in detail, the products to be used and how the work will be performed, i.e., size, color, who will be doing what work, amounts of materials provided, manufacturer model number, etc. There must be a detailed, written payment schedule in the contract.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
There are five common types of construction contracts: lump sum (or fixed price), time and materials (TM), unit price, guaranteed maximum price (GMP), and cost-plus.
Here are what the Smith + Malek team has seen as the most common errors in construction contracts: Its not written down. Both parties havent signed the contract. Not all of the terms of the agreement are in writing and in the contract. The timeline is unclear. Particular terms arent defined.
To that end, before you sign anything and start working, make sure your contract has these 5 key elements. A Detailed Scope of Work. Project Cost and Payment Schedule. Construction Timeline. Change Order Process. Project Issues and Dispute Resolution.
Contract Types Comparison Party 1 offers Bilateral Services or goods that are of value to the other party Unilateral Services or goods that the other party requested, usually in an open request Implied Services or goods Express Anything9 more rows Jan 26, 2022
Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.