A Brief Guide about Construction Contract Clauses

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Construction Contract Clauses

Construction projects are a great responsibility on the part of the contractors, project managers, and project owners. Their success does not only matter because of the time, efforts, and resources of the involved people, but also for the sake of the safety of hundreds and thousands of people that will get associated with it. Therefore, the involved parties need to be quite organized and efficient before starting work on the project. The very first thing that should be done in this regard is checking the contract clauses. The contract clauses include all the detailed conditions of working on the project, resolving all the issues and problems arising during the project, and ensuring its successful completion.

If you do not know enough about construction contract clauses, explore the below-mentioned article to get a brief guide about it, which will help you process the contracts easily.

Top 8 Clauses to Check Carefully in your Construction Contract

Construction is a risky business. Even countries like the United Arab Emirates, with the latest technology and resources, face challenges and issues in the construction projects. Most of the issues occur due to mismanagement, as the conditions are not stated carefully in the contract. The parties often forget to pay attention to contract details, which leads to severe issues.

Here are the top clauses that you need to check carefully in your construction contracts in order to avoid bigger issues.

1. Project Scope

The very first thing that needs your utmost attention in the construction contract clauses is the scope of the project. The project scope should be clearly defined and mentioned in the contract. Sometimes, the parties mistake the proposal as the agreed document when it is not, which leads to claims issues. This also motivates contractors to acquire the help of construction claim consultants in Dubai to shed light on the project scope and avoid scope-related claims later on.

2. Bidding Amount

One of the key elements of construction claim clauses is the bidding amount of the project. The bidding amount is the one which is proposed by the contractors. It may not be the final decided amount of the project. Therefore, it is important to maintain the distinction between the bidding amount and the final amount. Deciding upon the conditions of dealing with cost variation should also be decided at this point.

3. Project Duration

The next thing that requires your utmost attention in the construction contract clauses is the project duration. In the case of mega construction projects, hundreds of parties are linked with it. They have invested their resources and need control on time to run their business smoothly. So, check the conditions that highlight project duration and delay issues.

4. Payment Specifications

Timely payments are what keeps the construction projects on track. It is also quite essential to add payment specifications in the construction contract clauses. It will help the contractors, subcontractors, and project managers manage the payments without identifying the paying party.

5. Variation Clauses

Any unforeseen situation can emerge in the construction projects at any given time. The parties involved in the construction project cannot indulge in the blame game and waste their time defining the resolution strategies every time they happen. Therefore, pay attention to the variation clauses and list all the expected variations that can change the project’s scope.

6. Flow down Clauses

The project owners and contractors usually sign construction contracts. The contractors are responsible for staying true to the contract and fulfilling all the conditions meant in it. The flow down a clause in the contracts highlights the subcontractors’ responsibility to meet all the contract conditions. So, do not forget to include it in your contract.

7. Design Specifications

The project’s design specifications are one of the most important construction contract clauses you should never ignore or forget in the contract. The design specifications highlight the design requirements, the possibility of changes, and resolution strategies in case of changes and unsuitable conditions. So, pay attention to this clause.

8. Dispute Resolution

A variety of disputes can occur between different parties at any stage of the project. The involved parties cannot stop working on the project and wait for the situation to resolve on its own. You need to clearly define the conditions and resolution strategies to ensure the smooth running of the project, so include the clause of dispute resolution. You can also hire service of construction claim consultants in Dubai to guide through the contract and lend support to resolve the claim issues at any point.

Other points that need your attention!

Apart from the above-mentioned construction contract clauses, some other important points need your attention in the construction contract clauses. Here are these:

  • Name and information of contractor and project owners
  • Leal description of the property
  • Breach of contract conditions.
  • Warranties
  • Conditions of disposing of documents and materials upon project completion

So, be very cautious while signing the construction contract. You can also involve the experts to understand the legal conditions better and get support in crucial times of disputes or claims.

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