Construction Contracts 101

A construction contract is a legally binding agreement between a client and a building contractor.  Traditionally, a building contractor will meet with a prospective client, assist in getting building plans prepared, and put together a construction contract.  The client then reviews the contract, not knowing what most of the construction language means, and not knowing what a fair and reasonable price is to construct their project.  This construction contract spells out everything that will take place from start to finish during the construction process, including the building plans & specs, a draw schedule and the total price to be paid to the contractor.  The construction contract is the single most important item in building a house or any type of commercial project.  The majority of people starting a construction project know very little about what goes into a construction contract and construction pricing, and there is little to no one that reviews construction contracts with them to ensure their interests are protected and the price is fair and reasonable.  They simply agree with the price and terms the building contractor puts into the construction contract, and signs the contract.  Once this contract is signed, the parties involved are legally bound by it.  This contract may be fair and reasonable, or you can very well be excessively overcharged, additional charges can be added in during construction, and there may be language in the contract making it acceptable for your project to be completed many months past the scheduled completion date.   These are just a few things that could be included in your construction contract. 

Thomas Construction Consulting serves as an advisor for clients planning any type of construction project between $1 million - $500 million+.  We have developed a global Network of the most reputable building contractors to serve our clients.  These carefully selected building contractors have built and designed some of the highest quality and most beautiful structures anywhere.  As a seasoned professional in the construction and real estate industries, Thomas Construction Consulting receives the very best pricing and terms from our network of construction professionals that we pass on to our clients. When you are ready to start planning your new construction project or major renovation project, contact Thomas Construction Consulting to save you time and money.