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When preparing to go to contract with a client, you’ll need to pay particular attention to clauses that may need to be added over and above those found in standard contracts available form State governments and building associations.
Working to a checklist will help both builder and client consider all contract information that will be needed.
What does a contract cover?
A contract covers payments, schedules, ownerships, and penalties, as well as timing of delivery and quantities and quality. However, while it’s easy to think of such things in broad terms, because the contract is a legal and binding agreement care must be given to fine details.
There are 25 areas of clauses that may need to be included in a contract, though it’s also likely that they won’t all be included in every contract you write. These areas include:
- Parties and licensing of contractors
- Pricing and fees
- Variations and conditions that affect costs
- Securities required to be lodged
- Insurances
- Terminations agreements
There is a stipulated format for any contract, which details the documents which must be incorporated. The contract generally begins by setting out the need for the written agreement and identifying what the contract covers, as well as what goods and services are to be supplied by the contractor.
The identification of parties under the contract – including nominees and representatives of the contractor – must be made, and include details of their powers and obligations.
Two of the most detailed sections will naturally be those that cover quality issues and progress of works.
Quality issues
The contract will specify the materials to be used and the quality of work that should be expected, with referral to industry standards in the absence of detailed clauses. Acceptable standards will need to be agreed with the client before confirmed in the written contract, and there should be provisions made for unacceptable work or materials.
Progress of work
The contract will also stipulate the timings of work under the contract, with commencement and finish dates, as well as any required intermediate finishing dates.
The Blueprint CPD contract checklist course has been designed with the input of a legal practitioner, ensuring it is not only relevant but benefits from precise commentary. It will provide qualifying CPD points toward the tradesperson’s licence, as well as required real life skills necessary for business risk reduction and development.