What are the Contents of a contract?

Content of a Contract

Contracts are important in all the types of businesses. In the business world different types of contracts are used for different purposes. There may be a contract between two or more parties. Then let's discuss the things which should be included in a contract.

1.Contractual Parties

Identification and clear role specification of each party involved.

2.Scope of Work

Involves the details and specific description of the work to be performed, including specifications, materials, and standards to be followed

3.Project Timelines

Start and Completion dates, Milestones and a schedule of work phases could be determined

4.Payment Terms

Total contract price, pricing schedules, payment dates or terms of progress payments, conditions of payment types.

5.Change Orders

Procedure to handle changes in the scope including how the approval and cost implications are managed during the construction period. (Procedure mainly depends on the parties involved)

6.Responsibilities

Duties and obligations of each party, including responsibilities for permits, inspections, and compliance with Law and Regulations.

7.Insurance and Bonds

Requirements for Insurance Coverages, Bond securities or any other financial guarantees.

What are the Insurance Covers for a Construction Project?

What are the Bonds required for a Construction Project?

8.Warranties

Guarantees that the Contractor should/ or provides for the Quality of material, workmanship, including the duration of warranties.

9.Dispute Resolution

Methods of resolving any problems/ disputes between Contract parties related to any of the content of the contract or scope of work

10.Termination

Conditions pertaining to which the contract can be terminated by either party

11.Signatures

To seal the deal and agree, each party’s representative or head to sign in acknowledgement of each condition of the agreement. Date of signing to be notified and signing to be witnessed by an additional person from each party. (Legality and Intention is covered)

12.Attachments/ Annexures

Any additional documents such as drawings, specifications, plans, permits, BOQs, and other which is required to be part of the agreement.