Construction projects contribute to the Missouri economy, and builders do their part by working with various clients. Since building projects involve significant money and resources to complete, the arrangements require numerous documents that provide details about the venture. All parties should familiarize themselves with these documents, and they may need them to move forward with the project and avoid legal woes.

Primary documents for a construction project

A contract stands as a vital document for a construction project. A contract is a binding agreement between the two parties that stipulates each one’s duties and obligations. The builder may agree to develop a new home, and the buyer signs the contract agreeing to pay a specified amount. Other terms could appear in the contract. Anyone who violates the terms might be guilty of a breach of contract.

The scope of work (SOW) document adds further details to the arrangement. The SOW document provides clear details about the work the contractor intends to perform, how it will be performed, who handles the tasks, and information about materials. A construction schedule would lay out when the work commences and ends, along with possible details of what may happen if delays arise.

Further document notes

Contracts may present details explaining what might happen if any extensions become necessary and might refer to other documents, such as the bill of quantities. All parties could benefit from reviewing contracts and other documents thoroughly.

A cost estimate might be one of the most helpful and informative documents. The various parties likely need to know the project’s overall budget to make their decisions.

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If you’re a Missouri contractor or subcontractor who has worked on a construction project and you have not been paid, you may be wondering what your options are. One option that you may have is to file a mechanics lien.

What are mechanics liens?

A mechanics lien is a legal claim that’s usually filed by contractors, subcontractors and suppliers who have not been paid for their work on a construction project. The lien gives the contractor or supplier a security interest in the property that was improved by the labor or materials that they provided. This means that if the property gets sold the proceeds from the sale must help in paying off the mechanics lien.

There are two types of mechanics liens in construction law: voluntary and involuntary. Voluntary liens get filed by the contractor or supplier at the request of the property owner. Involuntary liens are typically filed by the contractor or supplier without the request of the property owner. Mechanics liens can get filed against both commercial and residential properties.

How should you file a mechanics lien?

If you’re thinking about filing a mechanics lien, you should first send a notice of intent to the property owner. This notice indicates that you intend to file a lien and gives the property owner an opportunity to pay what’s owed.

The next step is to file the actual lien with the county recorder’s office. The lien must include certain information, such as the name of the contractor or supplier, the amount owed and a description of the work in question.

After the lien is filed, you must then serve a copy of the lien to the property owner. You can do this by mailing a copy of the lien or by delivering it in person.

If you don’t receive payment after the lien gets filed, you may then be able to foreclose on the property. This means that you would initiate a court proceeding to have the property sold in order to pay off the debt owed.

If you’re dealing with nonpayment on a construction project, a mechanics lien may be an option for you.

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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.

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