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Video Guide on Construction Contracts in Massachusetts management

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Commonly Asked Questions about Construction Contracts in Massachusetts

Choice of law clause, also known as a governing law clause, that allows the contract parties to choose the substantive law of Massachusetts to apply to the contract.
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.
The simple answer to this question is, no, the contractor cannot charge additional fees after receiving full payment. This boils down to a contract issue. The final step in completing the contract is for the contractor to send the final invoice and for the client to pay the invoice in full.
Contractors may ask for a portion of the total cost upfront to secure the scheduling, purchase materials, or pay subcontractors.
Common Construction Deposit Structures 50/50 Deposit: Note that this will usually only be seen on smaller projects jobs like simple repairs or paint jobs, etc. An initial deposit is made to cover materials, permits, and possibly labor, while the final payment wraps up the profits and other expenses.
Lump sum contracts, also called fixed price contracts, establish a fixed price for all of the materials and labor required to complete a job. This is the most basic and common type of construction contract.
By law, the contractor cannot collect more than 1/3 of the cost of the contract in advance, unless special order materials are needed.
The contract must provide the total contract amount and the timing of progress payments. Massachusetts law prohibits a contractor requiring an initial deposit of over 33% of the total contract price unless special materials are ordered.