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.
North Dakota Basic Building and Construction Contract is a legally binding document that outlines the terms and conditions agreed upon between the owner of a construction project and the contractor responsible for carrying out the work. It incorporates various provisions and clauses to ensure a smooth and successful construction process. Here is a detailed description of this contract, highlighting its key aspects and relevant keywords. 1. Parties involved: The contract clearly identifies the parties entering into the agreement, i.e., the owner and the contractor. This helps establish their roles and responsibilities throughout the construction project. 2. Project description: The contract should provide a comprehensive description of the construction project, including its location, size, purpose, and any special requirements or considerations. 3. Scope of work: It defines the scope of work to be performed by the contractor, including specific tasks, materials, and construction methods to be utilized. This ensures that both parties have a mutual understanding of the project's objectives. 4. Construction schedule: The contract outlines the expected start and completion dates of the construction project. It may also include milestone deadlines and provisions for extending the schedule due to unforeseen circumstances. 5. Payment terms: This section specifies the agreed-upon payment structure, including the total contract price, installment schedule, and acceptable methods of payment. Additionally, it may cover any provisions for change orders or additional work, along with their corresponding costs and procedures. 6. Performance bonds and insurance: To protect both parties, the contract may require the contractor to obtain performance and payment bonds, as well as liability insurance. These provisions help safeguard against potential risks and ensure financial security during the construction process. 7. Change order processes: In case modifications or variations to the original contract are necessary, the contract should establish a formal change order process. This ensures that any changes are documented, agreed upon, and properly accounted for in terms of cost and schedule adjustments. 8. Dispute resolution: In the event of any conflicts or disputes, the contract may provide mechanisms for resolution, such as mediation, arbitration, or litigation. Clear procedures for handling disputes can help minimize delays and additional costs. 9. Termination clauses: The contract should outline the conditions under which it can be terminated by either party. These clauses may include defaults, breaches, or unforeseen circumstances that render the contract unfeasible. They also establish the rights and obligations of each party in case of termination. 10. Additional provisions: Depending on the specific requirements or regulations in North Dakota, the contract may include additional provisions covering topics such as permits, licenses, inspections, safety guidelines, and compliance with local building codes and regulations. Different types of North Dakota Basic Building and Construction Contracts may vary based on the type and scale of the construction project, such as residential, commercial, or public works contracts. Additionally, there might be variations based on the specific parties involved, such as design-build contracts or contracts with subcontractors. In conclusion, the North Dakota Basic Building and Construction Contract between the owner and contractor is a crucial document ensuring a clear understanding of the project's terms and responsibilities. It serves to protect both parties, establish effective communication, and facilitate a successful construction process.
