Vital Information for Your Construction Contract Part 2
- Time frame
- Pricing, pricing schemes, and the terms of payment
- License information
Now, we will discuss other important inclusions to any construction contract. Remember, if you need assistance with contract drafting, review, or negotiation, a Jacksonville construction litigation attorney is standing by.
Construction Lien Provisions
Whenever you enter a contractual agreement with another party in the State of Florida to engage in the improvement of real property exceeding $2,500, your contract must include a lien notice. This notice establishes that the owner must pay the contractor for all work completed pertaining to the contract. It also asserts the rights of subcontractors, sub-subcontractors, and material suppliers to file a lien for unpaid labor, materials, or other services. Lien law can be perplexing, so it’s important to consult a Jacksonville construction attorney before following through with a lien.
Recovery Fund Disclosure
Typically, when a construction contract contains a lien notice, it also includes a recovery fund disclosure. The purpose of this disclosure is to detail the rights of the owner to pursue a contractor who has taken unlawful action that resulted in a financial loss while in the owner’s employ. In other words, a recovery fund disclosure acts as the opposite to a construction lien provision.
Disputes and Termination
Disputes are common in the construction industry. Therefore, it’s important to clearly detail how disputes will be resolved in the contract. If one party breaches the contract, it can become null and void unless certain provisions are included to avoid such a case. For example, you can include an arbitration clause to ensure that all disputes are handled outside of court with the help of a Jacksonville construction attorney. If you or the owner violate the terms of the contract, it can also be terminated if both parties agree to walk away.
If you would like to speak with a Jacksonville construction litigation attorney, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.