Builder Contracts and Legal Issues

Builder Contracts and Legal Issues

Builder Contracts and Legal Issues

Builders have a lot to consider when they are bidding for a new building project. Not only do they have to think about the project as a whole, but they also have to consider when the client needs their project completed, materials being available, rules and regulations, and other potential risks that may arise.

Just as it is important for the client to do their research on the best contractor, likewise, a contractor must be knowledgeable on the scope of the project and make sure that the client understands the necessary information regarding all of the project details. Licensed contractors in Michigan stay up to date on the various requirements that go along with writing a contract and understand legal issues can arise if proper documentation is not made.

It All Comes Down to the Contract

Creating a building contract allows the contractor to clearly define the scope of work being performed for a project, and serves as a legal document that will hold both parties accountable.

On the side of the client, they are bound to pay for the work being defined and understand the project in its entirety, the timeline it will be completed, and the payment schedule they need to meet in order for the project to not be delayed.

Having clear documentation is important as many times additional materials, project changes, delayed materials, or amendments to the project can happen. This has been seen even more in recent years due to the increase in demand for residential homes and shortages of product due to the Covid pandemic.

Potential for Legal Issues

There is always the possibility that a client isn’t satisfied with the work you’ve done or something out of the ordinary occurring which creates a walkway for legal action to be taken. However, by having a contract that clearly states exactly what your project will cover, entail, and conditions and responsibilities that are to be adhered to, you’re covering not only the project but also your business from being dragged through the mud.

Make sure that when considering a project you always keep in mind the promises you’ve made, outlined, and are delivering to your client in your contract and what that really entails. If you stick to what was written out, there’s no reason you should need to worry about legal issues arising from miscommunication or dishonesty.