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Commonly Asked Questions about Construction Contract Law

A contract is a legal agreement between two or more parties in which they agree to each others rights and responsibilities. Offer, acceptance, awareness, consideration, and capacity are the five elements of an enforceable contract.
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.
Your attorney has a solid understanding of the four major elements that make up a construction contract, and can counsel you during the drafting of your contract. Scope Of Work. Change Order Provisions. Indemnification. Payment Provisions.
For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.
Five main principles of Contract Law: Offer and acceptance, consideration, intention to create legal relations, capacity, and legality.
Three rules generally accepted in construction of contracts are the plain meaning rule, the enforceability rule and the interpretation that favors the non-drafting party. The plain meaning rule states that the ordinary and prevailing usage will be applied to the words in the contract.
4 Types of Construction Contracts Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.
6 Essential Elements of a Contract Offer. Acceptance. Awareness. Consideration. Capacity. Legality.