Construction law deals with all aspects of building, from the initial bidding process, to the negotiation and drafting of contracts. Construction law is also relied upon when there are disputes between the parties.
Commonly, an owner procures offers from contractors through a Request for Proposal (RFP) or a Request for Qualifications (RFQ). An owner usually publishes the RFP or RFQ during the design phase of the project, and includes specifications of what the owner wants. After the owner selects the contractor, the contractor will advise on pre-construction matters during the design phase.
At some predetermined time, such as at the end of the design phase, the contractor offers a contract price for the construction of the project. After negotiations, the owner and contractor may agree on the price, and the contractor continues construction. If the owner and contractor do not agree on the price, the owner will often negotiated with other contractors.
Occasionally, contractors and owners use form contracts for their agreement to construct a project in exchange for payment. Whether the contractor and owner negotiate and draft their own contract or use a form contract, the following clauses often appear in the construction contract:
Although the contract may not state so, the law implies duties between the contractor and owner when they enter into a construction agreement:
Essentially, both the owner and the contractor are required by law to act in good faith in the performance of their contractual obligations.
Construction contract negotiations can be tolling and difficult. An attorney can assist you with negotiations so your needs and requirements will be met. A lawyer can also help you with drafting construction contracts, and explain your duties under the contract. Additionally, if one party suggests alterations to the contract, an attorney can help you negotiate for your best interest or pursue the appropriate legal remedy.
Last Modified: 01-28-2014 12:19 PM PSTLaw Library Disclaimer
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