A building and construction contract must fulfill the same requirements as any other type of contract in regard to the following necessary elements:
" an agreement;
" between competent parties;
" based upon the genuine assent of the parties;
" supported by consideration;
" made for a lawful objective; and
" and in the form required by law.
Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.
The Florida Basic Building and Construction Contract between Owner and Contractor is a legally binding agreement that governs the relationship between the owner and contractor in a construction project in the state of Florida. This contract sets out the terms and conditions that both parties must adhere to in order to ensure a smooth and successful project completion. The Florida Basic Building and Construction Contract is designed to protect the interests of both the owner and the contractor, providing a comprehensive framework for the construction process. It covers essential aspects such as project scope, payment terms, project schedule, change orders, dispute resolution mechanisms, and warranties. There are different types of Florida Basic Building and Construction Contracts between Owner and Contractor, each tailored to the specific construction project at hand. These include: 1. Lump Sum Contract: This type of contract establishes a fixed price for the entire project. The contractor agrees to complete the construction for a specified amount, regardless of any cost fluctuations or unexpected expenses encountered during the project. 2. Cost-Plus Contract: In a cost-plus contract, the owner agrees to reimburse the contractor for the actual costs of construction, including labor, materials, and overhead expenses, in addition to an agreed-upon percentage or fee. 3. Time and Materials Contract: This type of contract is based on the actual hours of labor performed and materials used during the construction. The contractor invoices the owner for the time spent on the project, along with the cost of materials, equipment, and subcontractors. 4. Unit Pricing Contract: This contract is often used for projects with repetitive elements, such as highways or utilities. It establishes a price per unit, such as per mile of road or per foot of pipe, and the total cost is determined by multiplying the unit price by the quantity installed. Regardless of the specific type of contract used, it is essential for both the owner and contractor to thoroughly review the document before signing. It is recommended to consult with legal professionals experienced in construction law to ensure all important terms and safeguards are included, and that the contract complies with the regulations and requirements set by the state of Florida.
