The purpose of using construction contract template
A construction contract agreement is a document which specifies the date and with whom you are going to participate in the construction process. Usually the contract agreement is made between the owner of the project and contractor. The contract is an important document which defines clearly the scope of work which will bind the owner to your service. It is very important to understand the scope of work specified in the agreement and to complete the work as scheduled. Finally, it remains a document used to get your payment. There are free construction contract templates available online, you can go through it to get an idea what all information has to be included. However, the agreement must be in a written form and the content must be clearly understood between both the parties. It should include the service being contracted and termination policy. The financial terms should be written clearly.
What should be included in the contract agreement
The contract agreement should include the following sections :
Description of the project – the agreement should contain a description of what the contract is about.
Price of contract – it describes the amount of money being contracted and all possible additions and deduction to the contract.
Payment basis – it tells how the money is going to be paid to the contractor and it should also specify the percentage of money retained on application for payment.
Construction schedule – it explains how the project schedule will be divided.
Sample construction contract templates are available for download for your reference.