Construction Contracts: Terms & Conditions

In the construction industry, contracts are an absolute necessity when it comes to protecting your company and ensuring you are properly paid for the work you do. Your contract not only works to protect and defend you from issues with collecting pay, problems on the job site, and other circumstances that could cause you strife, but it also sets expectations between you and your client and prevents disagreements. And then, after it sets all these standards, you and your client agree to it in writing and put those protections into action. In this blog, we’ll cover the most basic construction contract: Terms & Conditions.

Needless to say, a contract is an invaluable resource for all construction business owners across the country. However, one of the most confusing topics construction professionals must navigate when looking to get a construction contract created is what kind of contract or contracts they need for their specific business model. This information is hard to come by and a little confusing, so in this month’s blog series, we’ll break down the four most common and important kinds of construction contracts, what they include, and who needs them!

Short-Term Contracts

The simplest of construction contracts is your terms & conditions. It is best for residential contractors who are in and out between one day and one week and who are working with the owner directly. This kind of contract is appealing to a short-term client because it’s easy to digest and very simply covers the most essential information. Unlike a full residential remodel contract, which will be closer to 8 to 10 pages, a terms & conditions contract is traditionally only a 3- to 4-page document. A few pages are all you will need for a project where you are in and out in a few days.

Negotiate Better Construction Contracts

At The Cromeens Law Firm, we have extensive knowledge and understanding of construction contract laws and are licensed in Texas, Georgia, and California. We are often able to solve contract disputes for our clients through informal negotiations, mediation, or arbitration. Work with us to equip yourself with the ability to properly evaluate your risks before you sign and negotiate your next subcontract with greater confidence and ease.

What Is a Terms & Conditions Contract?

A terms & conditions contract is typically a bare-bones version of a residential remodel contract. It is still custom-built for your business and includes essential protections and information such as what type of warranty you can offer, statutory requirements for your state of work, and other custom terms your business may need. However, it doesn’t have a milestone payment plan due to the short duration of the project and will exclude protections that are a must for a longer-term contract, as well. While it doesn’t have milestone payments, it typically will still include payment terms of 50% down and 50% upon completion. This kind of contract will cover all your bases for a short-term project. 

Why do You Need a Construction Contract?

The construction industry is expansive, and there are a lot of nuances in each niche of work. Knowing what kind of construction contract you need in your construction company is an absolute necessity when it comes to protecting your business on the front end. We hope this blog series can serve as a resource for nationwide contractors to do that. Your business, and the work you do, deserves to be protected. A custom-built construction contract for your company is the best way to ensure that happens. To get one created, contact our team of experienced construction contract professionals to get started! Join us next week; our blog will cover the details of a full Residential Remodel/Repair contract!

In Conclusion 

Knowing how to protect yourself best is essential, especially when growing your business, and having a team to support you when you’re facing the potential of getting sued is a huge advantage. The Cromeens Law Firm team is here to help keep you out of the courtroom on the front end or help you win the fight inside of it. Contact us today and set yourself up for success with the support of a legal team.

This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, consult an attorney.