Types of Construction Contracts

Inability to Give Consent to a Contract

• Unemancipated minors, insane or demented persons, and deaf-mutes who do not know how to write cannot give consent to a contract.
• Parties unable to read or understand the language of the contract can allege mistake or fraud, and the person enforcing the contract must show that the terms were fully explained.

Construction Contract Documents

• A construction contract is an agreement between the owner and the contractor and is enforceable by law.
• Construction contract documents are written documents that define the roles, responsibilities, and work under the contract and are legally binding on the parties.

Components of Contract Documents

• The two major components are:
  • Drawings: define the quantity of the work (length, width, area, volume, etc.)
  • Project manual: includes specifications and defines the quality of the work.

Subcontracts and Subcontractor Relations

• Deals with awarding subcontracts to specialty contractors by the general contractor.

Key Provisions of Construction Contract

• Changes in the work: how changes are authorized and processed.
• Time and schedule requirements: project startup, progress, and completion relative to the project schedule.
• Payments and completion: how the contractor will be paid, progress payment procedures, and withholding and failure-to-pay issues.
• Protection of persons and property: addresses safety concerns for owner's property and project personnel.
• Insurance and bonds: deals with insurance and bonding requirements.
• Uncovering and correction of work: specifies how and when the contractor is responsible for uncovering or correcting unacceptable work.
• Miscellaneous provisions: addresses various matters like successors and assigns issues, tests and inspections, and interest on delayed payments.
• Termination or suspension of the contract: conditions under which parties may terminate or suspend the contract.

Lump-Sum Contract

• The contractor agrees to complete the work specified in the plans and specs for a single fixed amount of money.
• The cost is known up front, but flaws, errors, or omissions in the plans and specs will result in a change order.

Change Orders

• Requests made by the owner to add features to or subtract features from the scope of the project.
• Results in extra work and/or extra time, both of which result in extra cost to the owner.

Technical Specifications

• Serve as a blueprint or roadmap, providing clear instructions to ensure that the final product or project meets the desired criteria.
• Types of specifications:
  • Concept specifications
  • Design specifications
  • Design description specification
  • Construction and manufacturing specifications
  • Process specifications
  • Standard specifications

Anatomy of a Specification

• Identity
• Revision reference
• Title
• Introduction
• Description
• Performance
• Construction
• Reliability
• Quality assurance
• Packaging and storage
• Standard and specifications
• Records

Specification Writing

• Plan
• Research
• Outline
• Write
• Edit
• Review
• Obtain approval

Types of Construction Contract Specifications

• Prescriptive specifications
  • Provide a thorough and methodical description of materials and intended installation techniques.
  • Can be split into three subcategories:
    • General provisions
    • Required products
    • Installation techniques