When it comes to hiring a general contractor for a construction project, having a basic general contractor agreement in place is essential. This agreement not only protects the general contractor, but it also protects the property owner and lays out the terms and expectations of the project. Here are some key elements that should be included in a basic general contractor agreement:
Scope of Work: The agreement should clearly outline the scope of work that the general contractor will perform. This should include a detailed description of the work to be completed, the timeline for completion, and any specific requirements or materials needed.
Payment: The agreement should clearly state the payment terms and expectations. This should include the total cost of the project, payment schedule, and any penalties for late or incomplete payment.
Insurance and Permits: The general contractor should provide proof of insurance and any necessary permits required for the project. This protects both the contractor and property owner in case of any accidents or damages during construction.
Change Orders: The agreement should outline the process for change orders if any changes need to be made during construction. This should include how changes will be communicated, the additional cost (if any), and the timeline for completion of the change.
Termination: The agreement should include the process for termination of the contract if necessary. This should include the reasons for termination, the notice required, and any penalties or fees associated with early termination.
Warranties: The general contractor should provide a warranty for the work completed. This should include the length of the warranty and what it covers.
Dispute Resolution: The agreement should outline the process for dispute resolution if any issues arise during the project. This should include the steps involved in resolving the dispute, such as mediation or arbitration.
By including these key elements in a basic general contractor agreement, both the general contractor and property owner can have a clear understanding of the expectations for the project. This protects both parties and ensures a successful construction project.