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.
Title: Nebraska Basic Building and Construction Contract between Owner and Contractor: A Comprehensive Guide Introduction: In Nebraska, the Basic Building and Construction Contract between the Owner and Contractor is an essential legal document that outlines the terms, conditions, and obligations of both parties involved in a construction project. This contract serves as a foundation for ensuring a successful and smooth collaboration between the owner and contractor, minimizing conflicts and protecting the interests of both parties. Types of Nebraska Basic Building and Construction Contracts: 1. Lump Sum Contract: A lump sum contract is the most common type of construction contract in Nebraska. It stipulates a fixed price for the total project, agreed upon before the construction commences. The contractor is responsible for completing the project within the given time frame and under the agreed budget. Any deviations from the project scope or unforeseen costs are typically the contractor's responsibility. 2. Cost Plus Contract: Under a cost plus contract, the owner agrees to pay the contractor for the actual costs of labor, materials, and subcontractors, plus a predetermined fee or percentage. This type of contract is commonly used when the project scope is uncertain, and there is a higher risk of additional costs arising during the construction process. 3. Time and Material Contract: A time and material contract sets out the hourly rates for labor, equipment, and materials utilized during the project. This contract allows flexibility for the owner to make changes or modifications to the project scope during construction. The contractor invoices the owner based on actual hours worked and materials used. Key Components of a Nebraska Basic Building and Construction Contract: 1. Project Description: Clearly defining the project scope, specifications, materials, and quality standards ensures both parties have a shared understanding of the project goals and deliverables. 2. Project Schedule: This section includes the timeline for the construction project, including start and completion dates, milestones, and any penalties or incentives for meeting or exceeding the agreed-upon schedule. 3. Payment Terms: Outlines the payment schedule, retain age amount, and the method of payment (e.g., lump sum, progress payments, or periodic invoicing). The contract may also include provisions for addressing change orders or potential penalties for late payments. 4. Change Orders: Specifies the process of initiating and approving changes to the original project scope. It includes details such as procedures for submitting change orders, impact on project cost and schedule, and how disputes related to change orders will be resolved. 5. Termination/Cancellation: Describes the circumstances under which either party can terminate the contract, including default, breach of contract, or unforeseen events. It may also outline the process for terminating the relationship and any associated remedies or penalties. 6. Dispute Resolution: Indicates the method of resolving disputes between the owner and contractor, such as negotiation, mediation, or arbitration, before resorting to litigation. 7. Insurance and Bonding: Specifies the required insurance coverage (general liability, workers' compensation), licenses, permits, and surety bonds necessary for the project. Conclusion: The Nebraska Basic Building and Construction Contract between Owner and Contractor is a critical legal agreement that establishes a clear understanding of the project expectations, responsibilities, and rights of both parties involved. By carefully considering the specific type of contract and including all relevant clauses and provisions, this document sets the stage for a transparent and successful construction project in Nebraska.
