Construction Contract Key Terms
Summary
A construction contract should clearly outline the scope of work, payment terms, and procedures for change orders. It should include indemnification clauses to protect against negligence claims and define force majeure events that could impact performance. Termination conditions must be specified, and a dispute resolution process, such as mediation followed by arbitration, should be established. The contract should be governed by the applicable state laws, in this case, New Jersey.Full Conversation
jersey
Great, thanks for providing that information. Here are the key terms drafted into a construction contract format.
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Construction Services Agreement
Parties:
- Client: XYZ Corporation
- Contractor: ABC Construction Inc.
Background:
- XYZ Corporation hires ABC Construction Inc. for the construction of a new office building.
Key Terms:
- Scope of Work:
- Contractor shall perform all tasks necessary for the construction of the office building, ensuring compliance with all applicable building codes and regulations.
- Payment Terms:
- Total fee: $*,*,*
- Payment schedule:
- *% upfront
- *% upon foundation completion
- Remaining payments tied to specific milestones as agreed upon by both parties.
- Change Orders:
- Any adjustments to the scope of work or associated costs must be documented through a written change order, signed by both parties.
- Indemnification:
- Contractor agrees to indemnify and hold the Client harmless against any and all claims, damages, liabilities, and expenses arising from the Contractor's negligence.
- Force Majeure:
- Neither party shall be liable for any delays or failures in performance due to unforeseen events such as natural disasters, acts of war, or other events beyond their control.
- Termination:
- Either party may terminate the contract under conditions such as a material breach of contract. Written notice must be provided.
- Dispute Resolution:
- In the event of a dispute, the parties agree to first attempt mediation. If mediation fails, the dispute shall be resolved through arbitration in accordance with the rules of the American Arbitration Association (AAA).
- Governing Law:
- This contract shall be governed by the laws of the state of New Jersey.
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Please review these terms and let me know if there are any adjustments or additional details that need to be included.
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