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Attorneys James R. “JR” Clary, Jr., Christopher S. Suba, Casey D. Neale and Briton J. Myer

Clauses in construction contracts must be read carefully

On Behalf of | Oct 30, 2018 | Construction Law

Construction projects are governed by the expectations of the project that were set when the bid was made. Almost all contractors will have the person sign a contract before embarking on the building. This outlines everything from the terms of the project to the payment expectations. When you are hiring a contractor, be sure to read every word on the paper before you sign.

Unscrupulous contractors might offer a contract on a project with the hope that you aren’t going to read the document. This could put you in a difficult situation if the project doesn’t go as planned. One specific thing to look for in the contract is what you are able to do if the contractor breaches the contract.

Some contracts include a clause that binds you into using only arbitration if there is a problem. This isn’t really a good situation since you are giving up your rights to exercise other options like a lawsuit in court. Instead, you will be limited to presenting your case to an arbitrator and then abiding by the decision that person makes.

Another point to remember is that not all deviations from the contract are going to require you to take action. If you do have to deal with a breach of contract, the court will look at whether it caused you to suffer a material loss. If you didn’t lose money or have a serious impact from the breach, you might not be able to receive compensation for the breach.

It is usually a good idea to have someone review the contract before you sign it. A reputable contractor won’t try to rush you into signing anything.