How To Hammer Out A Commercial Construction Contract

3 June 2019
 Categories: , Blog


Working with a commercial construction contractor services firm means taking on a big task. The contract you sign needs to cover a lot of bases, and it should protect both your interests and those of the contractor. Before you greenlight a project, here are four things you should keep in mind as you come to an agreement.

Materials Specifications

There are a lot of reasons to be highly specific about the materials that will be used by a commercial construction contractor. In many cases, the architect has arrived at a set of plans based on very precise parameters. If you're dealing with a LEED project, for example, sourcing and selection of materials are often essential to having a building certified.

You don't want to end up in litigation over what went into a structure, and it's best for everyone to include these specs in the contract. If a contractor treats this like an inconvenience or something to be worked around, you may want to look elsewhere for assistance.

Goals and Accountability

Benchmarks are everything when dealing with commercial building work. Many customers like to develop payment schedules around particular benchmarks. If 20% of the work has been done, for example, a tranche of funding might be activated that ensures the contractor can purchase supplies for the next phase. Generally, these benchmarks are meant to incentivize meeting goals, and they often include bonuses for being met.

A benchmarked structure is also frequently required to acquire financing. Banking and investment institutions often impose benchmarked contracts before they'll even offer loans for projects.

Availability and Lines of Communication

It cannot be stated strongly enough how important communication is during a build. This goes far beyond just making sure the contractor can get in contact with you. If there are questions about making adjustments to structures to account for previously undiscovered geological problems, the contractor needs to be able to talk right away with third parties like excavators, engineers who studied the location, and even folks at government agencies. Every contract should include obligations for maintaining and promoting communication among all stakeholders and contractors.

Incorporating Plans

Design features need to be incorporated directly into the contract. This ensures that there won't be questions about what was really intended. If you're not in a position to include these sorts of items in a contract, then you're not ready to roll. Ask an attorney to review everything prior to acceptance, too.

Keep these factors in mind as you work with a local contractor from a company like Merriman Construction