Construction contracts include many documents other than the signed piece of contract including contract drawings, specifications and prevailing conditions of the contract. Once you sign the contract you are bound to deliver the project within the contract period and within the agreed sum as per conditions in the contract. However if you missed out reading a specific contract clause or if you don’t have the correct idea of what it means, you may have to face issues during the construction phase which can lead to disputes and end with spending more money and time to solve those.


Scope of work is the first thing you should check before signing your contract. In some contracts, the scope of work is defined as an attachment to the signed document. However, you must carefully read the given scope and confirm that it is the scope that you offered your tender price or proposal. If the scope of work is not complex, it is best to include it in the main contract document. Nevertheless, if it is an attachment, it is necessary to mention about the attachment in the signing contract document.


Contract amount is the most important thing to check in your contract and make sure there are no mistakes in the sum. Most of the time, construction amount and agreed amount after negotiations are different. Check this figure correctly before you sign the contract. Your contract amount should reflect the tax amount or if it is excluded, then there should have an indication of excluding taxes.


Project duration is another important indication to check in any construction project agreement. You should check the anticipated project completion date including the project start date. Don’t ignore the importance of project commencement day as it is the basis for most extension of time claims. At the same time, check the expected site handing over date from the client. In case if the client fails to handover the site to the contractor to start the work on the proposed commencement day, the project may have a delay in completion. As a result, a contractor may have to face the liquidated damages to the client which is not a good idea for successful project completion.


Payment terms are essential for any construction project in order to manage the cash flow. As a contractor it is essential for you to deliver the project within a budget. Some construction companies in bangalore, charge an advance payment. However, some companies such as BricknBolt do not collect any advance payment but progress payment will be made. Depending on the situation, you must analyze the payment terms. If it is progress payment only, then you need to check the date for claim submission and period of progress claim response. These details are important for you to deliver your project without cash flow issues.


Although you expect to complete your project without disputes, you will face challenges and disputes along the way. Depending on the complexity of the project these disputes may arise. However, most of the House Construction Company know how to resolve disputes at the beginning of it without dragging as it impacts the completion of the project.

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