Signing a construction contract comes with numerous risks involved, as does anything with your signature attached. Taking the extra time to fine-tune contract details will save everyone involved time and money, because nothing deters a project more than miscommunication or contract errors. Negotiations aren’t everyone’s natural strong suit, listed below are a few things to keep in mind to avoid conflict before closing a deal and breaking ground.
Determining insurance coverage
Insurance is extremely important in construction due to the inherently risky nature of the industry. Consider consulting an insurance advisor if there are any questions on what policies best suit the project’s circumstances. The contract should include who will be supplying and receiving the insurance coverage, as well as what the insurance covers in case of a mishap. Skipping the fine print of insurance coverage could result in a big, expensive mistake that leaves both parties unhappy.
Discuss payment schedules
Payment is something that can be a tricky subject to negotiate. It is important the payment amount is not only secured, but when and how it is paid as well. It’s also not unlikely for projects to run over budget, so there should be clear documentation of how the payment for the extra parts and labor will occur.
Set realistic deadlines and expectations
A comprehensive and clear scope of work must be outlined in the contract. Without clear expectations of what is to be done, neither party can be satisfied with the outcome. By having potentially tough, but necessary conversations with all parties involved in the contract, the chance of liability issues are cut in half.
Handling conflict when it arises
A construction project wouldn’t be complete without roadblocks and setbacks along the way, which inevitably causes conflict that even the most detailed contract can’t prevent. If two sides cannot come to an agreement, there are mediators available for consultation that specialize in the construction industry and all of the legal issues that come along with it.
If you feel that you’re coming off as too assertive during negotiations, don’t worry—combing over a contract is a win-win for everyone involved, not just yourself!
If your construction team is ready for an addition, contact our team here at Madden industrial Craftsmen! As one of the top construction staffing agencies in the Northwest, we have the talent ready to help you today.