A previous post on this blog talked about how many disputes about Massachusetts construction contracts wind up in arbitration. As that post explained, arbitration is a relatively informal process by which those involved in the construction industry can resolve their disputes efficiently.
Erecting a bridge is no small feat, and it often takes several years to complete such projects. This can impact traffic in the area, inconveniencing motorists. So, it is preferable that such projects are completed by the deadlines included in the construction contracts between the project owner and contractor.
Contracts between project owners and contractors form the backbone of many construction projects in Massachusetts. It is important, then, to understand what provisions construction contracts should include to ensure they are both comprehensive and enforceable.
Construction projects in Massachusetts involve many parties, so it is inevitable that sometimes these parties will have disputes regarding contracts they have with one another. These types of disputes are not unusual. However, issues such as breach of contract can cost the parties a lot in time, money, labor and opportunity. Therefore, it is important that claims involving construction contracts be resolved in a satisfactory manner.
When a project owner in Massachusetts is working with a contractor on a construction project, the contractor has the option of either entering into further construction contracts with subcontractors who will perform specialized work on the project, or the contractor can directly hire an employee. There are pros and cons to each choice.
When it comes to commercial construction projects, contractors and suppliers will bid on the job, and the property owner or developer will generally award the contract to the lowest responsible bidder. Bidding is different when the property owner or developer is a government agency compared to private contracts. It is important for the parties to construction contracts in Massachusetts to understand how the public bidding process compares to the private bidding process, so they can make informed decisions.
A good construction contract prepares for every eventuality, but when you're making a fixed-price bid on a project, unforeseen circumstances can occur. Many contractors run into differing site conditions.
Every construction project requires a contract. Even a project that seems simple can evolve into a complicated mess. A contract helps ensure that the other party fulfills its duties to you.