Discover construction contracts and contractor agreements, and learn how to use them to ensure construction projects run smoothly.
A construction contract, sometimes referred to as a contractor agreement, is a legal contract created between a contractor providing construction services and the owner of the project. The contract could be between a homeowner, business owner, or a construction management company in charge of new construction work and the general contractor who is responsible for planning and carrying out the project. Or it could be between a general contractor and an independent contractor or subcontractor.
Whether it’s a simple home improvement contract or an enterprise-level business contract, this type of document is crucial in the construction industry and outlines all the details of the project to avoid conflict and confusion. It should make everything about the project clear, including pricing, payment terms, timeline, consequences for breach of contract, any necessary subcontracts, logistics for carrying out the work, and other important information.
When to use a construction contract.
Use a construction contract anytime you hire someone to conduct a construction job or anytime you’re hired by someone else to do construction work. Even when you work with friends or family, it’s a good idea to create a contract to make sure everyone gets a fair deal and is aligned on what the work will entail. Should there be any disagreements later that require arbitration, having a contract will be critical for dispute resolution.
There are five common types of construction contracts. Choose one based on the type of job and what works for both parties.
Common elements of a construction or contract agreement.
Consult with a legal professional knowledgeable on applicable laws to see which items you should include in your contract. They may consist of the following:
Name and contact information of the project owner
Name and contact information of the contractor
Legal description of the property being worked on
Detailed description of the work to be completed
Completion date and date of final payment
Terms for contract termination by either party
Consequences of breach of contract by either party
Terms for unforeseen accidents or “acts of God”
Change orders or a policy for adjusting the contract
Hold harmless clause outlining details of warranties, liability, and indemnification
Required licenses, permits, and insurance
Terms for access to the property and other necessary logistics
Total contract price or terms for calculating construction cost and payment terms
Right to withhold payment by the contract owner
Terms for the condition of the property and disposal of items upon completion
Signatures and date of signatures from both parties
Once you identify which type of contract is perfect for your work, you can streamline the process by going digital. With Adobe Acrobat Pro DC with e-sign, you can make a construction contract template to edit and reuse for different clients and projects.
Do all this and more with Acrobat Pro DC with e-sign:
After they adopted the e-signature tools in Acrobat Pro DC, our own Adobe Partner Connection (APC) Reseller Program was able to shorten its contract completion time from about 20 days to about 2 hours. Contracts can be completed quickly on any device, leaving more time for customer support and a 75% reduction in contract-related email traffic.
Always be sure to seek legal advice before you create or sign any legal contracts. Then get every contract created and signed in no time and keep business moving forward with Acrobat Pro DC. Save your templates, track your signatures, leave messages for signers, and more.