Get Fundamentals Of Construction Collections

If you have clients that are past due in their payments to you, you can hire a collection agency to get as much as you can. The best choice depends on your situation and how quickly you need the money. Both options can be an important part of a contractor's collection policy.

Here are five of the most important terms that should be a part of every construction contract. Scope of Work. Clients need to be clear about what a company is going to do for them. ... Payment Obligations. ... Insurance Information. ... Parties to the Agreement and Notice. ... Authority to Make Decisions.

Tha basics The purpose of the construction contract is to (1) allocate the duties between the parties, (2) recognize and allocate the risk to the different parties, and (3) reduce the uncertainty surrounding the project and allow the parties to plan for the project and the future.

A construction contract is an agreement between an employer (sometimes referred to as the client) and a contractor to construct, repair, modify, renovate or even demolish something in an agreed time frame, for an agreed price and to agreed standards. The contract is signed by both the employer and the contractor.

There are three essential components of any contract: the offer, the acceptance, and the consideration. If all three of these characteristics aren't present, a document is not considered a contract.

A construction contract should include terms such as making sure the contractor has the proper licenses and insurance and that the owner knows that they could receive a mechanic's lien on their property if they don't pay.

Here are five of the most important terms that should be a part of every construction contract. Scope of Work. Clients need to be clear about what a company is going to do for them. ... Payment Obligations. ... Insurance Information. ... Parties to the Agreement and Notice. ... Authority to Make Decisions.