Developing a contract between property owners and general contractors provides several benefits. Your construction property contract will outline expectations and requirements. Doing so will minimize the potential and challenges of substantial disputes. Get in touch with Calabrese Law Associates today for help with your next contract.
Table of Contents
- Understanding General Contractor Agreements With Commercial Property Owners
- What to Know About General Contractor Agreements With Commercial Property Owners
- What Types of Legal Issues You May Face
- What Construction Attorneys Can Do For You
Understanding General Contractor Agreements With Commercial Property Owners
General contractors and commercial property owners should come up with a contract that includes the following:
- The names of people in both parties.
- The expected start date of the construction.
- A detailed depiction of the work that the contractor will complete.
- An expected end date.
- The payment schedule, including dollar amounts and dates.
- A notice regarding how parties will handle changes and delays.
- An overall price for the project.
- A list of all project documents, including blueprints and similar materials.
- The expectations and responsibilities of each party.
Unlike residential contracting projects, the above contract terms are not a legal requirement in Massachusetts. See M.G.L. c. 142A s. 1; M.G.L. c. 142A s. 2.
What to Know About General Contractor Agreements With Commercial Property Owners
There are four main ways to enumerate any construction contract, including:
- Time and materials: The project’s contractor is on a daily or hourly rate. The client agrees to pay any additional costs that arise during the construction period.
- Fixed price: The client pays for the decided-upon amount, even if there are changes in the meantime.
- Cost-plus: The client will pay for all costs incurred throughout the project. These contracts cover material and labor costs, along with part of the contractor’s profit.
- Unit price: The items in the project are divided into units. This contract works for both tasks and materials.
Creating a satisfactory commercial property contract is essential to every project. Most disputes between parties occur as the result of a problem from the contract. A contract also allows you to obey Massachusetts laws and regulations. Construction contracts ensure all individuals know what to expect, stay on track, and adhere to applicable laws.
What Types of Legal Issues You Might Face
Regardless of whether you have a contract or the type you have, several issues may still arise. Common legal disputes for the construction industry include:
- Payment disputes, including those around unexpected costs.
- Delays that lead to a longer timeframe than initially outlined, especially if there was no related clause in the agreement.
- Construction performance issues as they relate to what is (or is not) outlined in the contract.
- Contract breaches by either party.
- Fraud claims.
- misuse of construction payment monies by contractor.
What Construction Attorneys Can Do for You
Working with a construction attorney to draw up a contract should be your first step. Calabrese Law Associates has attorneys who specialize in developing commercial property construction contracts. We will write up a contract that meets legal requirements and works well for both parties.
Having a thorough contract prepared can prevent or minimize the likelihood of a dispute. However, if there is a disagreement, our experienced lawyers can help you resolve it through the litigation process.
Work With Construction Lawyers From Calabrese Law Associates
Take preemptive measures against disputes and handle them when they arise with Calabrese Law Associates. Please contact us today for help with commercial construction contracts in the Greater Boston area.
*This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.
*Attorney Advertising. Prior results do not guarantee a similar outcome.