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How can good contracts cut down on disputes?

On Behalf of | Dec 7, 2022 | Construction Contracts

Before you start any construction project, you should ensure that everyone involved is on the same page.

A contract not only presents all details and information for a project but also sets proper expectations. It gives all parties a chance to review things fairly and sign off on it.

Why do you need a contract?

Freshbooks discusses how to craft solid construction contracts. Why is this so important? In essence, this legal document protects both you and all other parties from potential issues that may crop up during the span of your time working together.

As an example, your client might demand more work without proper payment if your contract does not stipulate the full scope of the project. You might also have trouble collecting payment if the contract is not written properly.

Disputes often happen due to weak contracts. This can cost you a lot of time and money and may end up destroying your business ties in the process.

Creating an airtight contract

To avoid this, make sure you have an airtight contract. Include all of the primary and key pieces of information when drafting the contract, such as the project description, cost estimate, timeline, identifying information, stop work clauses, and an act of god clause.

This will protect you in the event of numerous different potential problems, such as pandemics, natural disasters, disputes among colleagues, and more. You can also use this as an opportunity to figure out how you will handle situations in which one party wants to change parts of the contract and how to handle that outside of court.