What is short form contract between owner and contractor?
A short form contract between owner and contractor is a legally binding agreement that outlines the terms and conditions for a construction project. It specifies the roles and responsibilities of the owner and contractor, the project timeline, payment terms, and any other relevant details. This type of contract is typically used for smaller or less complex construction projects.
What are the types of short form contract between owner and contractor?
There are different types of short form contracts between owner and contractor, including:
Lump-Sum Contract: In this type of contract, the owner agrees to pay the contractor a fixed price for completing the entire project.
Unit Price Contract: This contract involves payment based on the quantity of units completed or materials provided by the contractor.
Cost-Plus Contract: With this contract, the owner agrees to reimburse the contractor for the project costs, often with an additional fee for the contractor's services.
Time and Materials Contract: This contract allows the owner to pay for the contractor's services based on the actual time spent and materials used during the construction process.
How to complete short form contract between owner and contractor
To complete a short form contract between owner and contractor, follow these steps:
01
Gather all relevant project details, including scope of work, timeline, and payment terms.
02
Specify the roles and responsibilities of the owner and contractor in the contract.
03
Include provisions for any necessary permits, licenses, or insurance requirements.
04
Outline the project timeline and milestones, including start and completion dates.
05
Clearly define payment terms, including the total contract price and any milestones or installments.
06
Include any other relevant terms and conditions, such as dispute resolution or change order procedures.
07
Review the contract with both the owner and contractor to ensure understanding and agreement.
08
Sign and date the contract to make it legally binding.
09
Keep a copy of the contract for record-keeping purposes.
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