What is a Construction Agreement

Construction agreements are the types of agreements which are formed between a party who wishes to get construction done and a construction company which specialises in the constructing methods and wishes to offer services for a fixed amount of money in return. Any such agreement consists of the details such as the period of agreement, important dates, monetary considerations and the legally binding terms and conditions which is the main part of the agreement document.

These construction agreements play quite an important role whenever a piece of construction takes place. What these formal documents do is that they make it obligatory for the involved parties to follow and abide by the terms mentioned in the agreement so as to successfully complete the length of the agreement peacefully. The terms of the agreement act as a seal beyond which no illegal activity is to be granted permission. In the course of the agreement of the construction period, the document proves to be a testimony to the fact that both parties are to work in accordance with the conditions.

The dates of commencement and termination of the agreement are strictly applicable and give the parties a boundary or window to complete their respective tasks. Without having any fixed dates, the work could go on forever and hence won’t be regulated by any laws. Even the address and contact numbers mentioned in the agreement give a source through which the party can be contacted in case of any violation of agreement obligations.

Construction agreements also decide the cost of the various materials used and the labour charges as well. This particular point plays an important rule to decide beforehand a parameter which is to be followed throughout the agreement length. Thus with all the details of the document, construction agreement definitely are of great importance to the involved parties.

Category: Sample Agreements

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