When undertaking any major building work on your property, it is essential to have a written agreement in place between yourself and your contractor. This agreement, also known as a construction contract, outlines the terms and conditions of the project and serves to protect both parties involved.

Here are some important elements to consider when creating an agreement for building work:

Scope of work: This section of the agreement outlines the specific work that will be carried out by the contractor. It should include a detailed description of the project, including the materials to be used, the timeline for completion, and any specific requirements or instructions.

Payment terms: It is important to clearly outline the payment terms in the agreement, including the total cost of the project, the payment schedule, and any penalties or fees for late payment. Make sure to agree on a payment plan that works for both parties and is realistic for the project at hand.

Insurance and liability: The contractor should have adequate insurance coverage for the project, including general liability insurance and workers’ compensation insurance. This section of the agreement should also specify which party is responsible for any damages or injuries that occur during the project.

Change orders: Changes to the scope of work may arise during the course of the project, and it is important to have a process in place for handling such changes. The agreement should outline the procedure for change orders, including how they will be documented and how they will affect the project timeline and cost.

Termination: In the event that either party wants to terminate the agreement, there should be clear guidelines in place for doing so. This section of the agreement should outline the reasons for termination and any penalties or fees that may apply.

Dispute resolution: It is always better to have a plan in place for resolving disputes before they occur. The agreement should specify how any disagreements or disputes will be handled, including whether mediation or arbitration will be used.

Having a detailed agreement for building work in place before starting any major project can save both parties significant time, money, and stress. Make sure to work with your contractor to create a comprehensive agreement that covers all aspects of the project and protects your interests as well as theirs.