{"id":899035,"date":"2021-08-17T16:16:28","date_gmt":"2021-08-17T22:16:28","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899035"},"modified":"2021-08-17T16:16:32","modified_gmt":"2021-08-17T22:16:32","slug":"construction-agreement-property-owner","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-agreement-property-owner\/","title":{"rendered":"Small Construction Jobs – A Construction Agreement that Protects a Property Owner"},"content":{"rendered":"\n

Peter Pokorny | Real Estate Counselors<\/a><\/p>\n\n\n\n

Introduction<\/strong> \u2013 Real estate owners frequently hire contractors for small and
less complex projects to construct, remodel or improve their property. Even
for small jobs, a construction contract is beneficial. The contract requires
both parties to reach an agreement on the scope of the project and payment
before work begins and protects the owner if a dispute arises. This article
discusses some key terms an owner may want to consider in a small job
construction contract<\/a>.<\/p>\n\n\n\n

\uf0a7 Pre-Work Obligations<\/strong> \u2013 Before starting the project the contractor should
provide the owner (i) plans and specifications showing all of the work in
reasonable detail, (ii) copies of all permits required to perform the work,
and (iii) evidence of comprehensive general liability insurance, worker\u2019s
compensation insurance and umbrella insurance.<\/p>\n\n\n\n

\uf0a7 Inspection<\/strong> \u2013 The owner should have the right to inspect and be present
during the performance of the work to protect interest in the Property.
The owner should make sure that the contractor agrees that it has no
claims because of the owner\u2019s presence or inspections.<\/p>\n\n\n\n

\uf0a7 Completion<\/strong> \u2013 The contract should specify the outside date of completion
and if there are any penalties or consequences if there is a delay in
completion.<\/p>\n\n\n\n

\uf0a7 Indemnity<\/strong> – The contractor should indemnify and hold the owner harmless from any claims and damages that were caused by the contractor\u2019s breach of the agreement. In addition, the indemnity provisions should survive the expiration or termination of the agreement.<\/p>\n\n\n\n

\uf0a7 Warranty<\/strong> \u2013 The Contractor should guaranty its work be free from defects for a period of not less than one year from the date of completion. Further, the contractor should assign to the owner any other applicable warranties or guaranties received by the contractor from its subcontractors or suppliers with regard to the work.<\/p>\n\n\n\n

\uf0a7 Repair<\/strong> \u2013 The contractor should restore any affected area of the property damaged during the performance of the work.<\/p>\n\n\n\n

\uf0a7 Termination<\/strong> \u2013 The owner may want to have the right to terminate the contract and\/or take over the work if contractor is not performing the work timely and properly. For even more protection, the owner may want the right to terminate, at its sole discretion, regardless of how the contractor is performing. The contractor, however, may demand some compensation to cover lost profit for any discretionary termination right.<\/p>\n\n\n\n

Conclusions<\/strong> \u2013 Even for a small job, a well written construction agreement provides multiple benefits. An experienced business attorney can draft an agreement to address the issues discussed above and any other issues that may pertain to the specific project.<\/p>\n","protected":false},"excerpt":{"rendered":"

Peter Pokorny | Real Estate Counselors Introduction \u2013 Real estate owners frequently hire contractors for small andless complex projects to construct, remodel or improve their property. Evenfor small jobs, a construction contract is beneficial. The contract requiresboth parties to reach an agreement on the scope of the project and paymentbefore work begins and protects the… Continue reading Small Construction Jobs – A Construction Agreement that Protects a Property Owner<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,10998,224,10408],"class_list":["post-899035","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-agreement","tag-construction-contract","tag-property-owners","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nSmall Construction Jobs - 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