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.
Tennessee Basic Building and Construction Contract: A Detailed Description The Tennessee Basic Building and Construction Contract between Owner and Contractor is a legally binding agreement that outlines the terms and conditions of a construction project in the state of Tennessee. This contract is essential for establishing a clear understanding between the owner of the property and the contractor hired to carry out the construction work. With the inclusion of relevant keywords, let's delve into the details of this contract. Keywords: Tennessee, Basic Building and Construction Contract, Owner, Contractor, Construction Project, Terms and Conditions. 1. Purpose: The main purpose of the Tennessee Basic Building and Construction Contract is to define the obligations, responsibilities, and rights of both the owner and the contractor during the construction process. 2. Parties Involved: — Owner: The person or entity who owns the property and is initiating the construction project. — Contractor: The individual or company responsible for performing the construction work as outlined in the contract. 3. Types of Contracts: — Fixed PricContractac— - This type of contract specifies a set amount of compensation for the contractor, regardless of the actual costs incurred during the construction process. — Cost PluContractac— - In this contract, the owner agrees to reimburse the contractor for the actual costs incurred, including labor, materials, and overhead, and a predetermined fee or percentage for profit. 4. Scope of Work: The contract should include a detailed description of the project, including architectural plans, engineering details, and specifications. It should clarify the nature and extent of the work to be performed and the desired outcome. 5. Contract Duration: The start and end dates of the construction project should be clearly stated. Additionally, any phase-specific timelines and deadlines should be mentioned to ensure timely completion of the project. 6. Payment Terms: The contract must stipulate the agreed payment schedule, including the frequency of payments, reimbursement structure for additional costs, and any retention or hold-back provisions. 7. Change Orders: Procedures for handling changes in the project scope, design alterations, or modifications should be outlined to avoid any unwanted disputes. It should specify how change orders will be initiated, documented, approved, and priced. 8. Insurance and Liability: The contract should include provisions for the contractor's liability insurance, workers' compensation, and general liability coverage. It should also specify the owner's responsibility to maintain property insurance during construction. 9. Dispute Resolution: It is essential to include a clause outlining the procedures for resolving disputes that may arise during the construction process. This may involve mediation, arbitration, or litigation, depending on the preferences of the parties involved. 10. Termination Clause: This clause defines the circumstances under which either party can terminate the contract, as well as the respective obligations and liabilities that may arise upon termination. 11. Compliance and Permits: The contract should address the contractor's responsibility to obtain necessary permits, inspections, and compliance with local, state, and federal regulations and codes. In conclusion, the Tennessee Basic Building and Construction Contract between Owner and Contractor plays a crucial role in ensuring a smooth construction process by establishing clear terms and expectations. By accurately incorporating relevant keywords, this comprehensive description covers the various aspects involved in this legally binding agreement.
