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Whether you are building a new home or simply adding a deck, the easiest way to reduce the likelihood of there being any problems between yourself and the building Contractor is to have a signed contract.
The reason for this is simple: when parties have considered their respective rights and obligations and recorded their agreement in writing, the possible areas of dispute or difference are reduced considerably. For example, one of the most common areas of dispute between parties relates to the price. The Contractor claims payment for items of work and the Principal disputes their liability to pay for this work on the basis that it was included in the Contract Price. If there is nothing in writing, the parties are left to argue backwards and forwards as to what was included and what was not. However, if the parties have a written contract that includes a breakdown of the works and the costs, there is an accurate record to refer back to and the dispute is more likely to resolve itself. DO I NEED A CONTRACT?
The short answer to the question 'Do I need a Contract?' is YES. The reason is simply to ensure that both parties are clear as to the extent of their obligations and that there is something in writing to confirm the agreement, just in case.
More often than not a dispute of some sort arises on a building project. It may be as to whether or not an item of work was included in the price or is an extra, it may be the time for completion of the project, it may be the amount of labour that was to be on the site or the margin to be charged. If you use the BUILDRIGHT TM Conditions of Contract, all of these matters will be addressed and the parties will have certainty helping reduce the likelihood of a dispute arising. BUILDSAFE® has prepared Conditions of Contract which users of the BUILDSAFE Security of Payment Scheme are welcome to use at no extra cost. The Conditions of Contract have been drafted in a fair and impartial way and are not weighted in favour of either party. We have prepared two different types of contracts for Owner's/Principal's to use: one for large projects such as an extension or new house and one for smaller projects where the nature of the work is relatively straightforward such as a deck or a new kitchen.
It is a condition of using the BUILDSAFE® Security of Payment Scheme that you and your contractor have a signed contract and we invite you to review our conditions of contract if you do not have any other Contract that you are intending to use.
WHAT ARE CONDITIONS OF CONTRACT?
Conditions of Contract are the terms and conditions that establish and set the rights and obligations of the parties when a contract is entered into.
In a construction contract, the conditions are typically broken into two parts. The first is known as the 'General Conditions' and these are the conditions that are common to all contracts of a similar nature. General Conditions generally include clauses that address matters such as health and safety, what happens in the event of dispute or default by one party and who is responsible for insuring the works. The other section is known as the 'Special Conditions' and these are the conditions which are peculiar to a specific contract and may include things such as price, time for commencement and completion and scope of the works. In the past, Conditions of Contract for Construction Contracts have been prepared by one party or trade organisation and therefore tend to be weighted in favour of the party who prepared the document. That situation, whilst representing the agreement made on the day, is often the cause of much anxiety and conflict when the contract is underway. That is because it is not until then that most parties stop to take any notice of what it is that they agreed and when one side finds out that the other is 'unfairly advantaged', it can irreparably affect the relationship with each side trying to gain any advantage possible over the other. However, in most situations the parties have not prepared any form of contract and relied on a handshake and, at best, a quote from the builder. To repair that situation and to ensure that Users of the service enter into contracts that are fair to both parties, BUILDSAFE® has developed the BUILDRIGHTTM Conditions of Contract. In essence, these Conditions of Contract provide fair terms for the parties to operate under and are designed to enable the prompt and efficient completion of the Contract Works for the owner and payment of the agreed price to the Contractor on time. There are 3 Contract Documents which Members are welcome to use: BRCC1:2009 BUILDRIGHT Residential Conditions of Contract for large residential projects... BSPCC1:2009 BUILDRIGHT Conditions of Contract for Small Projects such as a deck or bathroom which ... BSCC1:2009 BUILDRIGHT Subcontract Conditions of Contract for use by a Contractor and a Subcontract which... |
