If you have decided to use a standard form construction contract for your project, it is always advisable to have this contract reviewed by a lawyer or other professional. A professional who is familiar with this type of contract, as well as construction practices, can determine what contract changes may be required for your particular project. Given the propensity of construction projects to cause problems such as cost overruns, delays in deadlines, and payment disputes, it`s important that your contract protects your interests. Overall, a well-suited standard construction contract is the best way to ensure that you achieve the desired end result and that any dispute is resolved fairly and appropriately. Despite the advantages of standard construction contracts, they are not suitable for all projects. Even if it is an appropriate starting point for your project, the terms of the contract may need to be tailored to your particular situation. When considering whether a standard contract is appropriate and which one to use, you should keep in mind that the terms of the contract can promote membership in that business organization in a subtle and less subtle way, as they were developed by business groups. For example, earar documents are widely used and generally balanced documents. However, AEOI contract documents provide an important project role for the project architect, which may or may not match your project delivery system. Similarly, contracts created by the EJCDC provide an important role for a project engineer.
The MCO, in collaboration with other organizations, has developed a number of contracts known as ConsensusDocs, which she believes are balanced and do not favour any particular party. Know the disadvantages of standard contracts so that you can pay attention to them when concluding a contract. As a rule, you will find the boilerplate towards the end of the contract. It refers to the standardized language used in most contracts. Standard-form construction contracts have several advantages. First, since documents are widely used in the industry, the terms of the contract are usually well understood by the parties involved in the construction, which hopefully leads to fewer misunderstandings at work. Unlike contracts that have been designed from scratch and may not address important issues, contract forms are usually comprehensive and cover virtually any issues that may arise in a construction project. Since model contracts have been used over time, case law has developed that deals with specific contractual clauses and the terms used in these types of contracts, allowing parties to resort to earlier decisions when problems arise to see how certain key provisions have been interpreted.
Finally, model contracts are easy to obtain at a relatively low cost. Most people don`t go through this section because they only see it as a legal formality. Often, the problem is not with what the mat contains. it`s more with what it leaves out. The law often depends on the language. Words have certain meanings in contracts, and while your eye may overlook words that sound right, you should be aware that a simple word change can change your legal status. For example, the use of the word ”should” has specific connotations. If a contract says you have to do something, it means you are obliged to perform that action. This is legally binding language. If this word is used in reference to an action you don`t think you should be forced to take, ask for it to be changed to ”may.” If someone offers you a standard contract as part of the business, don`t just sign it. Even if you own a small business, you are no less important than large companies when it comes to legal rights, and these companies review every contract they sign.
You should do the same. Be aware of the disadvantages of so-called standardized contracts so that you can look for problems. If someone tells you it`s a standard contract, ask them who it is. Although the word ”standard” sounds like a group of lawyers who formulated the contract after discussing and agreeing on the terms and language to be used, it is never so. .
