A building contract and how it is implemented can be the difference between you making or losing money on your project. The size and type of contract can be vastly different from project to project so you need to be fully aware of what it is you are agreeing to. Signing up to a contract that you understand will help you to run your job smoothly, avoiding problems for you and the other party.
The job of reviewing your contract is best left to a third party – they are more likely to deal with these contracts on a day-to-day basis, and they will make sure you know what you are signing up for.
1. It’s always good to get a second opinion
Construction contracts outline the terms of your work down to the letter, but can be hard to navigate and are often written in a way that can be confusing. Among other things, the contract will show you the work you are responsible for, how long you have to do it and what the penalty is if you do not finish it in time. Even with a contract written entirely in good faith there may be items included that you would not want to agree to and this can have severe consequences for the entire project.
This makes it extremely important to have someone from the outside conduct a full review of the subcontract deed or conditions. Plenty of disputes arise from building work, and understanding your obligations is necessary for completing the job – the alternative could be costly legal fees for you and your business.
2. Experience in handling tricky contracts
An external review service sees a lot of contracts, and that means they have grown accustomed to spotting a potential issue before they properly emerge. If someone in-house put the contract together in the first place, then someone in-house might not realise there is anything amiss – even if they have a legal background.
Trade businesses and sub-contractors especially need someone experienced in these matters as the implications of a contract dispute can have a huge impact on their time and cashflow. It is always important to have it reviewed – but this must be by a consultant who knows what to look out for.
3. Can avoid lengthy litigation
A poor contract of any kind can quickly turn into a protracted legal battle, and this will always be more trouble than it is worth. This is yet another reason why you need to have your contracts reviewed externally by qualified professionals.
This consultant should conduct a full liability and risk assessment of the contract so that you know every one of your contractual obligations. By outsourcing this, you and your team (if you have a team) can focus on the job at hand while your consultant keeps you informed on the best course of action at every juncture.
At Kingsbridge Consulting, we use our decades of experience to help you avoid unnecessary risks when signing up to a construction contract. Our review can either focus on individual documents or provide an overview of the key documents to highlight any potential issues, risks, opportunities, and deliverables.
We can make contracting less confusing, and provide ongoing support at every stage of a project.
To learn more or book an appointment contact us.