Types of Contract Conditions for Building

Documents

• The construction documents list in a building contract shows all the documents that are part of the contract. These documents include the blue prints, specifications for all the materials that are used in the project, and all building plans including site plan and framing plans. The documents describe the conditions of a completed project and are the primary conditions of the contract.

Scope and Time

• The scope outlines who is responsible for what. Depending on the needs of the project owner, the general contractor's scope of work may be only one part of the overall project. An owner may take on a greater portion of the scope of work herself, or may take responsibility for particular job site conditions like access and security. The scope also tells all parties what materials they will provide.

  Time conditions set forth when the project will be finished. They also spell out when the project will begin and specify the conditions under which the project time line will be renegotiated or changed based on changes in circumstances during construction. Time conditions assign responsibility to each party for the completion of his or her portion of the project at a designated time.

Payments

• Payment conditions specify the cost of the work and outline how the payments are made. Payments to a general contractor are often made in stages as the work is completed. Payments to subcontractors doing short portions of the project may be paid all at once upon completion of the work. These conditions include the project's requirements for retainage (the portion of the payment that is withheld until project completion), and for interest payments if payments are not made on time.

General Provisions

• These conditions cover everything not covered elsewhere. Common items include the warranty the performer of the work extends to the owner once the work is complete. The time period covered by the warranty becomes part of the contract, and a warranty is added to the contract documents. General provisions specify the level of insurance each party of the contract must carry and termination options in case one or the other party has to back out. Other conditions that could be outlined here include any access restrictions to the site based on time of the day, month or year; responsibilities for job site cleanliness; job safety responsibilities; and even allowances for advance payments if one party may incur a disproportionate financial outlay.