General Conditions of Contract in Construction: A Complete Guide
Construction projects are complex and involve a plethora of parties, including owners, architects, engineers, contractors, subcontractors, suppliers, and others. To ensure that these projects run smoothly and are completed on time, it is essential to establish clear and legally-binding agreements between all parties involved. This is where general conditions of contract in construction come into play.
What are General Conditions of Contract in Construction?
General conditions of contract in construction refer to a set of standardized terms and conditions that are used to govern the relationship between two or more parties involved in a construction project. These conditions are typically included in a construction contract and cover a wide range of issues, including payment terms, project duration, change orders, warranties, and dispute resolution mechanisms.
Types of General Conditions of Contract in Construction
There are various types of general conditions of contract in construction, but the most commonly used ones include:
1. American Institute of Architects (AIA) Contracts: These are standard construction contracts developed by the American Institute of Architects. They include general conditions, which cover the fundamentals of a construction contract, and supplementary conditions, which are specific to each project.
2. ConsensusDocs Contracts: These are standard construction contracts developed by a coalition of industry organizations, including the Associated General Contractors of America (AGC). ConsensusDocs contracts are designed to be fair and balanced, and they cover a wide range of project delivery methods, including design-build, construction management, and more.
3. Federal Acquisition Regulation (FAR) Contracts: These are standard contracts used by the federal government for construction projects. They include general conditions that cover the unique requirements of federal projects, such as environmental regulations and labor laws.
Key Elements of General Conditions of Contract in Construction
While the specific terms and conditions of general conditions of contract in construction can vary depending on the contract type, project scope, and other factors, there are some key elements that are typically included in these contracts:
1. Scope of Work: This section outlines the specific tasks and responsibilities of each party involved in the project. It includes details such as project location, project schedule, and any special requirements or specifications.
2. Payment Terms: This section outlines the payment terms and conditions for the project. It includes details such as payment schedules, invoicing procedures, and any penalties or interest for late payments.
3. Change Orders: This section outlines the procedures for handling changes to the original scope of work. It includes details such as how changes will be requested, how they will be priced, and how they will be approved.
4. Warranties and Guarantees: This section outlines the warranties and guarantees offered by each party involved in the project. It includes details such as the duration of the warranty, the types of defects covered, and the procedures for making a claim.
5. Dispute Resolution: This section outlines the procedures for resolving disputes between the parties involved in the project. It includes details such as the types of disputes covered, the procedures for mediation or arbitration, and the governing law and jurisdiction.
Conclusion
General conditions of contract in construction are essential for ensuring that construction projects are completed successfully and on time. These contracts provide clear and legally-binding agreements between the parties involved in the project, covering everything from payment terms to dispute resolution mechanisms. By understanding the key elements of these contracts, contractors, subcontractors, and other parties involved in construction projects can better protect their interests and ensure that their projects run smoothly.