What is General Contractor Contract Drafting?
A general contractor contract is a legal agreement between a property owner and a general contractor. It outlines specific terms for how the parties can work together on a project.
If you need to draft a general contractor contract, read the rest of this article.
We’ll explore key terms to include in it, how to draft it accurately, and why you should hire a lawyer to draft a general contractor contract for you.
What are Core Components in a General Contractor Contract?
A general contractor contract usually contains the following key terms:
- Parties. Identify both parties involved in the agreement, with their full legal names, addresses, contact details, and any license numbers.
- Work scope. This should be a detailed outline of the tasks and deliverables required.
- Pricing. Explain the payment structure and schedule of payments.
- Milestones. State what deliverable deadlines must be met, along with completion dates.
- Change orders. If you need to make amendments to the document, you should explain the process.
- Insurance and indemnification. Specify the required insurance and risk allocation between parties.
- Dispute resolution. If parties disagree, explain what dispute-resolution method will apply, such as mediation and arbitration.
What are Drafting Tips for a General Contractor Contract?
To ensure your general contractor contract is drafted professionally to protect your interests, there are some tips to bear in mind during the writing process.
Explain the Work Scope
Avoid ambiguity when drafting the work scope of your agreement. Explain every single task and deliverable that must be completed under the agreement. You should tie these to specific deadlines so that both parties can align their goals and work.
Be Transparent About Payments
You should explain the total contract sum, if it’s a fixed or cost-plus arrangement, and any deposit amounts that are involved in the arrangement. Provide details about when payments are made and how, so that you reduce your risk of financial disputes.
Set Up Change-Order Processes
It’s common for changes to be required during a project. To prevent delays or other challenges, make sure that you specify how additions and deletions can be made to terms in the agreement. Explain that changes must be put in writing and signed by both parties.
Allocate Risk and Liability
Your agreement must specify what risks are allocated to the parties and it should include indemnification clauses to cover third-party damages or claims. This section should be aligned with insurance clauses to provide protection.
Explain Workmanship Warranties
Define exactly what workmanship warranties apply and how long they will last. When writing this clause, make sure you also mention the punch list, a list of small fixes that must be made before final payment is released, so that you avoid challenges or disputes.
Should You Hire a Lawyer for General Contractor Contract Drafting?
Hiring a lawyer to draft your general contractor contract is advisable because having a well-drafted contract will provide protection and help you reduce your risk of disputes.
Here’s a rundown of how lawyers can help you when drafting your general contractor contract:
- Providing legal protection. A lawyer will draft clear terms to protect your interests and establish the parties’ legal duties to prevent ambiguity.
- Clearly defining the work scope. A lawyer defines the materials, construction work, deliverables, and any exclusions so that parties’ expectations are aligned.
- Stating payment terms. A lawyer will ensure all payment terms are clear and specific, such as regarding final payments, deposits, and how to navigate missed payments.
- Considering changes. They’ll help you determine how changes to the project can be agreed on, such as by stating that written approval is required.
- Establishing liability and insurance provisions. A lawyer will allocate liability for property damage or other things that can go wrong.
- Aligning the agreement with all laws. They’ll tailor your agreement to all relevant construction and other laws. They’ll also check that all licensing requirements and building regulations are considered.
- Reviewing your agreement. If you’ve drafted a general contractor contract, make sure you hire a lawyer to review its terms to clarify everything and prevent information gaps.
Where to Find a Lawyer for General Contractor Contract Drafting
If you need to hire a lawyer to draft your general contractor contract, you don’t have to struggle to find one by calling traditional law firms in your area. By using an online legal platform, you can find lawyers from the comfort of your home.
ContractsCounsel is one of the largest online legal marketplaces that connects you to a curated network of vetted lawyers. It provides transparent lawyer information so that you can quickly hire a reputable lawyer with experience to match your contract-drafting requirements.
If you need to hire a lawyer from ContractsCounsel to draft your general contractor contract, here are the steps to follow:
- On your device, go to the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ If you need an agreement review, you should select ‘Contract review.’
- Post your project or request. Include details about the project so that you can match with suitable lawyers on the platform.
- Wait for lawyer bids. Lawyers directly on the platform will send you bids to work on your project so you don’t have to search for lawyers.
- Review the platform’s lawyer data. The platform provides information about the lawyers, such as their credentials, locations, field of expertise, years of experience, and client ratings for previous projects the lawyers have completed on the platform.
- Hire a lawyer to draft your general contractor contract for a flat fee.
