Construction contracts exist to make the job of construction company owners safer, easier, and more communicative. This month, we’ve been breaking down the details of some of the most important construction contracts, who needs them, and what purposes they serve. Ultimately, having this information is a business owner’s must, and ensuring you have the right construction contract for your business can make or break its success. Today, we are continuing in the realm of commercial construction and what you need in writing to work on a commercial project.
It is important to note that if you are a commercial contractor doing a repair or remodeling job, you can change the scope of work on a residential remodeling/repair contract and use that as your direct contract with the client. You don’t always need to have a brand-new contract created. However, if you want to do a new build, you need to get your hands on the contract we’re covering today: The Prime Contract.
Who Uses a Prime Contract?
The prime contract is for commercial or residential general contractors primarily working on new build projects or a substantial project outside the contractor’s normal scope. On a project of this size, with more high-risk factors, your contract must be more thorough and have more safety measures built in. It also tends to be more likely that someone could become injured on new build projects, so it is essential to have space for extra details and defenses in this contract.
If you are a subcontractor on a project, though you do not need to have a prime contract created, you should have the prime contract reviewed by an experienced construction attorney. Because of the density of the document, you need to be sure you, as the subcontractor, are being supported within it, as well, and that your payment terms are fair and reasonable. It will also help you better understand the project, scope, and ultimate deadline so you can use that information to stay informed and avoid getting screwed by details you are not privy to.
Prevent a Lawsuit
The Cromeens Law Firm is here to protect you and your business. Our hope is that you never get stuck in a legal battle because you were not adequately informed or prepared. Work with us to equip yourself with the knowledge you need to protect your business and your hard-earned money.
Details of a Prime Contract
The prime contact is by far the most in-depth of the contracts we’ve discussed so far. Not only does it include the same provisions and clauses that protect your work in a remodel/repair contract, but it also has a lot of other details that cover your ass! In addition to larger dollar amounts, these contracts usually include a schedule of values and are generally a much more complicated document. This frequently is because a larger-scale project involves a broader scope, with a longer timeline, more payment milestones, and more risks such as material cost increases, natural disasters and weather issues, health problems, labor issues, and more. The larger a project is, the longer it tends to go. The longer it goes, the more likely it is for external factors to affect your progress. A prime contract is built to prepare for every possible problem area on the front end.
Do You Need a Prime Contract?
It’s important to know how to protect yourself, your company, and your hard-earned money. A great construction contract is a surefire way to do that. A prime contract is an essential puzzle piece for general contractors, especially when working on a new build. If that description fits you, consider looking into having a prime contract custom-built for your business. TCLF’s skilled team of construction attorneys is here to help you get started! Take advantage of this education, and put the benefits provided by utilizing an airtight construction contract to support your business into effect. Your company deserves to be protected, and your pay deserves to be a non-negotiable part of the work. Get a prime contract for your company to make that a reality.
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.