5 Tips for Garnering Construction Contracts
According to the Associated General Contractors of America, construction accounts for $887 billion of the gross domestic product in the U.S. This figure represents just how massive the construction industry is, and the construction industry includes over 3,700,000 individual construction businesses. There’s clearly enough construction work to go around, but these businesses are still often in competition with each other, bidding on jobs and fighting to secure contracts. How can a construction company win contracts — and how do you avoid ambiguity in a contract? Read to learn about the essential elements of a construction contract.
Consider Your Bid Carefully
What are the 5 essential elements of a construction contract? The first is simple — always consider your bid carefully before signing a contract. If you receive notification that you are the winning bigger, it’s imperative that you have the details of your bid double-checked by your bookkeeper, foreman, and superintendent before you formally commit to accepting a project.
Visit the Job Site
One of the best ways to gain a thorough understanding of a project is to make a quick visit to the job site. You can dispatch your field superintendent to stake out the area to assess whether any unforeseen conflicts or conditions may complicate your execution of the terms of your bid. Every experienced contractor knows that a job can look much different on paper than it does in person.
Review the Job Schedule
Another important key to success is your ability to stay on schedule per the itinerary in your contract. It’s vital, then, that you review the schedule for the job and ensure that you have the resources necessary to complete it on time. Committing to a schedule that’s not realistic will simply cost you more as you rush to cut corners and complete tasks by the deadline.
Make a Project Checklist
This might seem obvious, but one of the most effective ways to prepare for a contract is to simply make a checklist. This checklist should include a review of all meetings that are scheduled, all insurance and bonding requirements, and a general overview of the scope of the work — such as inclusions and exclusions that should be noted. Making note of these elements can help you approach a contract with confidence.
Verify Project Funding
Lack of appropriate funding is unfortunately a common cause for disputes between clients and contractors. If you are asked to sign a contract, you are entitled to verify that it will be funded as promised. To do so, you should simply ask for verification of funds as a condition of contract completion. Much like contractors insurance, this is a necessary protection that can save you and your company from losses that are avoidable.
About Coastal Oak Insurance Services
At Coastal Oak Insurance Services, we strive to protect your personal and business assets from coast to coast. When you work with us, you’re family. Contact us today at (949) 519-3738 to learn more about how we can provide you with comprehensive and tailored insurance coverage.
