Construction contracts are often far more important than other types of contracts, given the amount of money at issue and the numerous parties involved in the project. A well-drafted construction contract spells out the rights, obligations, and avenues of recourse available to everyone involved. Unfortunately, many construction ventures and contractors expose themselves to the costs of litigation by not using a contract that is unique to their project, or by not using a contract at all.
The Massachusetts construction lawyers at the Katz Law Group have drafted numerous construction contracts over four decades of practice in Central Massachusetts.
The Value of a Construction Contract for Every Project
Builders know full well that every construction project is unique. What is being built, how it will be built, when, and by whom – there are different answers to each of these questions for every project.
Using a construction contract from a template or online form will fail to account for these differences between projects. This will leave unanswered some important questions about each party's legal rights and obligations. Should a problem arise with the project that implicates one of these ambiguities in the contract, the parties involved are very likely to take their case to court if the costs of an out-of-court resolution are too high for them to bear.
Issues the Contract Should Cover
Every construction contract should be tailored to the needs of the project. However, issues that nearly every construction contract will touch on generally include:
- A project timeline, as well as the rights and obligations of the parties if there are delays
- How the project will be paid out and what the schedule of payments will be
- What happens when contractors or subcontractors are not paid on time, including when liens can attach to the property
- What rights are triggered by a breach of the contract
- Insurance requirements
- What happens if a contractor defaults on their contractual obligations
- How disputes will be resolved outside of the courtroom, generally through mediation or arbitration
- Indemnity agreements
Recent Changes in Massachusetts Construction Law Call for New Contracts
In Massachusetts, creating unique contracts for each construction project is even more important now: Several changes in the state's construction law have meant that many existing construction contracts may not allocate risk and responsibility in ways that their drafters hope they will.
For example, Massachusetts' Home Improvement Contractor Statute and its regulations have been amended in recent years, and a state appeals court recently ruled that general commercial liability coverage does not cover construction defects.
Changes like these in the legal framework that underlies every construction contract in the state can leave you or your company exposed to liability.
Massachusetts Construction Lawyers at the Katz Law Group
The construction lawyers at the Katz Law Group have represented general contractors, subcontractors, and independent contractors in nearly every segment of the construction industry. Call them at (508) 480-8202 or contact them online for help writing or reviewing a construction contract in ways that protect your rights and interests.
