Clear contracts are one of the best ways to prevent construction disputes. Whether you’re a contractor, subcontractor or property owner, understanding which clauses to include in your agreement can make a significant difference.
Below are a few key contract terms that help protect your interests and decrease the risk of legal conflicts.
Define the scope of work
Many disputes begin with misunderstandings about what work was promised. A well-drafted contract should clearly define the scope of work, including materials, timelines and specific responsibilities. If changes occur during the project, ensure those are documented through formal amendments to the agreement.
Payment schedules
Payment issues are among the most common causes of construction disputes in Texas. To reduce risk, a detailed payment schedule should be in the contract. Payments should be broken into phases based on completed work. All parties must be clear about when payments are due and what happens if they are late.
Dispute resolution clauses
A dispute resolution clause outlines how disagreements will be handled if they arise. Texas construction contracts often include mediation or arbitration before litigation. These options can be cost-effective, and they can also preserve business relationships.
If you do not have a contract in place or if your terms are vague or incomplete, you may end up in a construction dispute. Taking the time to include clear, protective clauses can save you from serious delays and legal disagreements.
Whether you are dealing with a new client or a long-standing business partner, contacts are essential. Seeking legal guidance can help ensure that your written agreements are above board.
