As we conclude the year, it's crucial for those in the construction industry to conduct a thorough review of their contracts, especially for long-term projects. It’s advisable to revisit your contracts to confirm they accurately represent the current state of the project. Any discrepancies should be addressed and documented immediately, rather than waiting for issues to arise.
Key areas for
review include the scope of work, ensuring it aligns with the actual
construction being undertaken. This includes verifying details, from fixtures
to significant additions like a new wing in a building. Changes discussed in
meetings should be formally documented in line with the contract's terms to
avoid future disputes.
Pricing
adjustments are also essential. For contractors working on a fixed price basis,
it's vital to include any additional scope in the pricing. Owners should adjust
payments accordingly if project elements have been removed. For contracts based
on actual costs, the end of the year is a good time to align charges with
incurred expenses.
Another
critical factor is the project schedule. Both owners and contractors should
assess whether the project is on track and address any delays appropriately,
including documenting reasons and determining responsibility for any schedule
slippage.
Administrative
aspects, such as updating the contact person for your company in the contract,
should not be overlooked. Contractors should also ensure timely submission of
any claims as per contractual deadlines to avoid disputes during litigation.
In summary,
instead of considering the contract only at the start, end, or during disputes,
it is beneficial for both owners and contractors to proactively review and
update their contracts throughout the project's lifecycle to ensure they
reflect the ongoing work accurately.
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At Construction Bonding
Specialists, we
work with new and experienced contractors to find the most satisfactory bond
solutions. As a dedicated surety-bond-only agency with decades of bonding
experience, we strive to discover surety solutions for all types of cases,
ranging from routine to challenging. Contact
us online
or call us at 248-349-6227 to
learn more.
Written
by the digital marketing team at Creative Programs & Systems: www.cpsmi.com
