What is General Contractor Agreement Drafting?
A general contractor agreement is a legal contract signed by a property owner and a general contractor for specific work conducted on the property, such as a construction project.
To prevent disputes between parties, a general contractor agreement includes terms such as work scope, project milestones, and payments.
Read the rest of this article to explore general contractor agreements in more detail, such as what information they include, how to draft them, and why you should consider hiring a qualified lawyer for assistance with the general contractor agreement drafting process.
What are Key Terms to Include in a General Contractor Agreement?
A general contractor agreement usually contains information regarding the following to provide clarity for both parties:
- Work scope. This is a breakdown of what work will be done by the contractor, as well as what materials they’ll use.
- Timeline. The construction project has specific milestones, which will be laid out in the agreement.
- Payments. The payments for the work will be released at specific milestones in the project. The agreement must be consistent so that both parties know what’s expected of them.
- Permits. This provides information about which party will handle getting all building permits to ensure compliance.
- Subcontractors. If the general contractor is, or isn’t, allowed to use third-party contractors to complete some of their tasks, this must be included in the agreement.
- Dispute resolution. Should conflict arise, the agreement should clarify what processes should be used to resolve it, such as mediation or arbitration.
What are Things to Consider When Drafting a General Contractor Agreement?
Your general contractor agreement should specify important things and remain legally valid to protect both parties’ interests. Here are some things to consider when drafting it.
Check State Laws
The laws surrounding general contractor agreements vary in different states, which is why you must research your state’s laws. They can determine details such as the wording and terms that are required, so you don’t want to avoid this aspect of the agreement-drafting process.
Clarify Permit Obligations
When specifying the permits that are required, make sure that you and the general contractor know who is responsible for getting them. Put this down in the agreement to avoid confusion or non-compliance.
Include a Completion Time
To prevent situations in which the construction project continues indefinitely or is significantly delayed, your general contractor agreement should include a date when the project must end. This should properly accommodate project milestones to ensure a smooth process.
Detail Compensation
When outlining the payments the general contractor will receive, you should include details such as how much will be paid to them, what payment schedules will be followed, and if payments are triggered by specific project milestones.
You should also specify when payment will be withheld, such as if the work is not meeting the agreed-on standards.
Consider Processes for Changes
If the property owner changes their mind about the project and what should be done, it can cause disputes. This is why the agreement should include a clause for how changes can be handled. It’s worth discussing this with the other party so that you can both decide on appropriate changes that are fair and reasonable.
Discuss Insurance and Liability
Be clear about who will be liable for losses, injuries, and damages, while checking that these clauses are aligned with all relevant laws.
The contractor must also have insurance coverage. Specify the insurance limits and if proof of insurance is required prior to the project’s effective start date.
How Does a Lawyer Help You with General Contractor Agreement Drafting?
Working with a lawyer to draft your general contractor agreement can help you ensure it’s legal and provides both parties with clarity about their roles and requirements. A lawyer will conduct various activities during the contract-drafting process, such as:
- Considering the project details so that the agreement reflects the work scope and payment structure properly.
- Tailoring the agreement to your requirements. They can also negotiate with the other party for favorable terms.
- Adapting the agreement to all state and local construction regulations and laws.
- Explaining both party’s duties and rights so that they’re on the same page.
- Protecting your interests with insurance and indemnification clauses.
- Addressing any potential legal and financial risks to minimize the chance of litigation.
- Reviewing your agreement if you’ve already drafted it. This will give you peace of mind that your agreement is reasonable and clear.
Where to Find a Lawyer for General Contractor Agreement Drafting
Hiring a lawyer to draft a general contractor agreement is advisable, but you might not know where to find one. Locating a reputable, experienced lawyer isn’t always easy, which is why you should look for one on an online legal network.
ContractsCounsel is one of the largest online legal marketplaces that provides you with access to a network of vetted lawyers. Since all the lawyers on the platform are experienced in contract drafting, they’re well positioned to help you secure a legally-valid and clear general contractor agreement.
If you need to request that a lawyer on the platform drafts your general contractor agreement, here are the easy steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project for free. Include a few details to help you find the most suitable lawyer, such as the type of project you require.
- Wait for bids from lawyers. You’ll receive multiple bids from lawyers on the platform who have the experience to help you.
- Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data. ContractsCounsel provides extensive information about its lawyers, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your general contractor agreement for a flat fee.
