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 Minnesota Basic Building and Construction Contract is a legally binding agreement between an owner and a contractor involved in a construction project in the state of Minnesota. This contract outlines the terms and conditions under which the construction project will be carried out, including the scope of work, project timeline, payment schedule, and responsibilities of both parties. Keywords: Minnesota, basic building and construction contract, owner, contractor, legally binding, construction project, terms and conditions, scope of work, project timeline, payment schedule, responsibilities. There are several types of Minnesota Basic Building and Construction Contracts that can be tailored to suit the specific needs of different construction projects. Some of these types may include: 1. Lump-Sum Contract: This type of contract establishes a fixed overall price for the entire construction project. The contractor agrees to complete all the work specified in the contract documents for a predetermined sum. 2. Cost-Plus Contract: In a cost-plus contract, the owner agrees to reimburse the contractor for the actual costs incurred during the construction process, along with an agreed-upon fee or percentage for the contractor's services. 3. Time and Material Contract: This type of contract is based on the actual time spent by the contractor and the price of materials used on the project. The contractor is usually reimbursed at an agreed-upon hourly rate or according to an agreed-upon material cost markup. 4. Unit Pricing Contract: This contract is commonly used when specific units of work or quantities are involved, such as in infrastructure projects. The contract establishes unit prices for different items of work, and the contractor is paid based on the quantity of work completed. 5. Design-Build Contract: In a design-build contract, the owner enters into a single contract with a contractor who is responsible for both the design and construction phases of the project. This consolidated approach aims to streamline communication and coordination. Each type of contract has its benefits and considerations, and it is important for both the owner and contractor to carefully review and negotiate the terms to ensure a successful construction project. It is recommended to consult legal professionals experienced in construction contracts to ensure compliance with Minnesota laws and regulations.
