A construction contract is an agreement between two parties defining the scope of the project, prices to be paid, and various terms and conditions of a construction project.

Drafting a construction contract may be boring, but it’s imperative to do so properly to protect your interests.

In this article, we’ll discuss important things to consider before signing a construction contract.

Things to Include in Your Construction Contract

Here are some important things to consider before finalizing your construction contract:

Time Frame

The agreement should include a time frame for when the work is to begin and when it is to end, so both parties are aware of the timeline before the work starts.

Make sure the schedule conforms to your needs, and there are no disagreements over the timeline.


The contract should clearly state all costs and expenses that will be incurred, and at what phases of construction will the money be paid.

Make sure you cosign any additional fee and also, ask for a construction budget.

Payment Method and Penalties

It’s also important to determine the payment method beforehand, so you know how much will be paid upfront as a deposit and under what terms the full amount is due.

The deadline for final payment should be clear, along with terms and conditions for an installment plan (if there is one).

Material Terms

Construction involves a lot of materials that are available in different quality grades.

It’s imperative to specify whether commercial or standard grades will be used when drafting up a construction contract.

Industry-Specific Transaction Rules

Every industry has different rules about how transactions are governed. Make sure you understand the construction industry’s transaction rules to avoid any problems later on.

Anticipated Disputes

Identify any potential risks or future disagreements linked to the project. The contract should address how these disputes will be resolved.

Ensure that the terms of dispute resolution aren’t unfairly beneficial to either party.

Inability to Agree

If for any reason, you and the other party are unable to reach an agreement over the final terms, you should include a clause addressing this problem in the contract.

Do You Need A Lawyer?

Construction contracts can be complex. They require time, attention, and technical knowledge, which is exactly what LCP&C construction contract attorneys offer.

Let us save you from the trouble and help you make the right decisions.

Book an appointment with LCP&C Attorneys today!