Four Crucial Documents For A Successful Construction Contractor

Posted by Caroline H. Beavers | Nov 25, 2020 | 0 Comments

Everyone wants to run an efficient construction business. Having documents that clearly set expectations and promote efficiency is a great way to ensure a smooth and successful project. While all documents are important and should be considered thoroughly, there are 4 critical documents that should be given special attention for construction projects. These documents can mean the difference between a successful project and one that leads to expensive litigation.

#1 Construction Proposal Template

A construction proposal template will give a contractor a clean and professional starting point for every proposal. The construction proposal is the most important document to any builder. The time spent adjusting and preparing the construction proposal should be matched to a well-made template. Not only will this give the proposal a professional look, but a prepared template will ensure all necessary information is included. This reduces the amount of time needed to double check and verify.

A proposal template should include a cover letter, company profile, contact information, costs, and agreement terms. A company profile will show your previous work for examples of what the recipient can expect as well as any company certifications or accolades. The costs section will include estimates for costs related to direct labor, materials, subcontractors, and equipment fees. The agreement terms outlined here are not the construction agreement. This agreement sets the terms for the proposal as well as the estimate of costs. The construction contract will include the detailed estimate.

 #2 Service Contract

While construction projects have schedules and estimates, there is always the opportunity that a schedule will need to be extended and costs will overrun. The service agreement will govern how additional time and costs will be handled by outlining your and your customer's responsibilities. The terms agreed to in the proposal are echoed in this agreement, and rights, responsibilities, and liabilities are expanded and clarified. The intention of the service contract is to establish costs and deadlines and ensure that scenarios is accounted for and risk is hedged as best as possible. A thoughtful and precise service contract can mean the difference between a smooth resolution and costly litigation expenses.

#3 Subcontractor Agreement

The prime contractor is up against costs and deadlines created in the proposal and service contract. In addition, the contractor will likely enter into subcontractor agreements as well to address various trades and scope items. These agreements will define the cost, timing, and work to be performed by the subcontractors. Precisely defining these terms will lead to an efficient and successful project. Ambiguity often ends in additional expenses and costly delays. In addition, subcontractor agreements manage the expectations of both the general contractor and subcontractor. Failure to do so can lead to headaches for all parties involved, and a set plan will lead to greater success for the project. 

#4 Architectural Proposal

The architectural proposal needs to meet the customer's design expectations. In addition, it must also follow local building codes, have a sound design, and be capable of being built within budget. In some scenarios, the architect will submit an architectural proposal to the general contractor, and the general contractor will select one proposal from several options. For the general contractor, he must ensure that the project can be built in the real world. For the architect, he must ensure that the proposal clearly defines and describes all relevant portions of the design. This is not the final blueprint, so being as accurate and thoughtful as possible will give the architect and general contractor the best opportunity to ensure the success of the project.

The information contained on this blog is intended to be general information only and not legal advice. This blog topic is not intended to be fully comprehensive. For these reasons, we suggest you seek a licensed attorney to help you review your construction documents. If you have any questions about the contents of this blog or if you need legal advice regarding your project, please contact the Beavers O'Connell Group at (720)538-0363 or contact the firm on BOG's Contact Us page. 

About the Author

Caroline H. Beavers

Having grown up working on a cattle and row crop farm in Arkansas, Caroline draws from those experiences to provide her clients with services that are replete with those values, including grit, tenacity, integrity and respect. Caroline also believes open and frequent communication is essential to the attorney-client relationship and works tirelessly to problem solve with and for her clients. Caroline learned early on you cannot predict the weather but you can put yourself in the best position to respond to it and Caroline strives to assist her clients when storms arise.

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