Guidelines for different types of construction contracts

On Behalf of | May 11, 2022 | Construction Contracts |

Clients develop construction contracts to maintain the quality and timeliness of their Missouri projects. There are several basic outlines of contracts that can be modified to suit your particular needs.

Guidelines for construction contracts

Every contract is required to be compliant with construction laws in Missouri. One type of construction law is The Missouri Prompt Payment Act, which ensures timely payments to all workers, such as contractors and suppliers.

In general, a construction contract lists the complete work duties of the professionals along with the costs, deadlines, materials and the names of all parties involved. The client informs the construction contractor of every duty and responsibility that he has to fulfill. A breach of contract claim is usually filed against the other party for any duty that is unfulfilled.

Types of construction contracts

Construction contracts vary by the type of construction work, the complexity of duties, the types of payments and other factors. The cost-plus construction contract provides payments to a wide range of expenses that the contractors incurs from labor to materials.

Similarly, a lump sum contract, or a fixed price contract, is the most common type of contract that provides a single fixed price for the entire project. Most contractors work on multiple lump sum contracts at one time. For a guaranteed maximum price contract, the client sets the maximum limit to pay the contractor. This agreement makes it easier for workers to create budgets for their projects.

A construction contract is a written agreement between two or more parties, such as the buyers, suppliers and builders. In every state, there are legal requirements and guidelines for making a valid contract. Anyone who makes one has the ability to include unique terms and conditions that fit the project.