Construction Law

7 Important Terms in a Construction Contract

1. Abandonment

There are two types of abandonment that employers should know in regards to contracts. Contract abandonment is where both parties have conducted themselves in a manner where the original contract is no longer valid. Both parties may mutually agree to abandon the contract in this case.

The other type of abandonment is when a contractor fails to perform the work on a project by not starting the project in a reasonable amount of time, not completing the work, or failing to resume work in a reasonable amount of time. In this case, abandonment of a construction project without legal excuse can be cause for disciplinary action.

2. Change Orders

Change orders provide modifications of the contract scope of work. A change order represents the mutual agreement between the parties on a change to the work, the price, the schedule, or any other term of the contract. Since a change order represents a mutual agreement, it’s a beneficial way to avoid any future disputes.

3. Default

Defaults are failures to perform specific terms of a contract obligation.

4. Notice

A notice is a clause that states how the parties in a contract will communicate with each other in written form. Notice requirements will be made in the contract to describe the time and substance needed to make a notice.

5. Termination

A construction contract can be terminated for either cause or convenience. A termination for cause can occur when one party stops work because of a deficiency in performance by the other party. A termination for convenience occurs when the owner stops work for reasons other than a deficiency in performance by the contractor. Contact your St. Petersburg construction lawyer to learn more about the difference between cause or convenience termination.

6. Unenforceable

A contract may be unenforceable when a certain statutory requirement has not been met.

7. Warranties

Warranties can be expressed or implied. The express warranty can usually last one year from the date of substantial performance. Implied warranties are those that are understood to be in effect, even if there is nothing in writing.

At Cotney Attorneys & Consultants we have the experience and skills needed to help contractors understand and draft contracts. Consulting with construction lawyers in St. Petersburg can help to assure that your construction contracts are drafted to protect you.

To schedule an appointment with a construction lawyer in St. Petersburg, please call us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.