Obligations Of Both The Builder And The Owner Under A Contract Agreement

If there is a problem during or after construction, there are several measures that concern project owners, designers and craftsmen. Even if the law provides for a period of delay, this period or requirement may, in many (but not all) cases, be modified by the parties in their written contract. In many cases, the amendment must be in writing and signed by both parties. In some limited cases, the law requires not only that the amendment be written, but also that certain words (sometimes called „magic“) be used. A well-written contract will contain these „magical“ words. The intent of a construction contract is to document the rights and obligations of each party with respect to the performance of the work and the payment for that work. It is not possible to list every point that should be included in a written construction contract in all situations. However, in each construction contract, the following points should be addressed in a general way: legally, there does not seem to be much recourse to repairing construction defects, although we have recommended to our client that it may in any case be worth contacting the client to reach an amicable solution. Assertions as to whether or not the owner knew or should have known that the project could not be built within the time limit set out in the contract generally relate to the owner`s „superior knowledge“. Seek legal advice before signing the contract. Suppliers are in the position of subcontractors in this system and it is likely that there will be a delivery subcontract (sometimes no more than one order) between the supplier and the subcontractor with whom the supplier carries out transactions.