Construction Contracts: A Quick Guide
When you’re planning a commercial construction project – whether it’s a new office, retail space, or multi-use facility – there’s a lot to manage. You’re thinking about timelines, budgets, permits, and perhaps most importantly, selecting the right construction partner. But before the first shovel hits the ground, there’s a critical step that often gets overlooked: understanding the construction contract and your potential liabilities.
At Wojcik Builders, we’ve partnered with business owners and developers across Northeast Ohio for more than 25 years. We know that clear, well-structured contracts are the foundation of successful projects. Let’s walk through what you need to know, and how you can protect your investment and your peace of mind.
Why Contracts Matter in Commercial Construction
Think of your construction contract as your project’s playbook. It spells out who is responsible for what, when things are expected to happen, and how potential issues will be resolved. A strong contract doesn’t just protect your construction company, it protects you, the owner or developer.
Without clear terms in writing, misunderstandings can snowball into delays, disputes, or unexpected costs. A detailed construction contract helps avoid gray areas and gives both parties a clear path to follow if things don’t go exactly as planned.
Six Elements Every Construction Contract Should Include
- Scope of Work
This outlines exactly what will be built and how. The more detailed this section is, the fewer surprises later. It should define materials, labor, timelines, and responsibilities of both parties. - Payment Terms
Milestone-based payments help keep the project on track. Your construction contract should define when payments are due, what triggers them, and how change orders will be handled. - Schedule and Completion Timeline
Time is money. Your contract should establish key milestones, substantial completion dates, and include language on how delays will be addressed (and who is responsible for them). - Insurance and Risk Allocation
Make sure your contractor carries the right insurance – general liability, builder’s risk, and workers’ comp are a must. Your contract should clarify who is liable in the event of damage, injury, or defects. - Dispute Resolution
No one wants a legal battle. Including a mechanism for resolving disputes such as mediation or arbitration can help avoid court and keep your project moving forward. - Warranties and Guarantees
You should know what’s covered and for how long once the project wraps. Most reputable contractors offer warranties on labor and materials.
What About Liability?
Construction comes with risk. If something goes wrong like property damage, jobsite injury, or design flaws, it’s important to understand who holds responsibility. A well-written contract clearly assigns liability, so you’re not left holding the bag.
This is where your construction partner’s experience makes a difference. At Wojcik Builders, we work proactively with owners to identify and mitigate risks before they become problems. That means transparent communication, reliable insurance coverage, and a commitment to doing things the right way.
Tips for Business Owners and Developers
- Review everything with your legal and financial advisors before signing. Construction contracts can be dense don’t be afraid to ask questions.
- Get everything in writing. Handshakes are great for relationships, but construction contracts keep projects on track.
- Don’t just choose the lowest bidder. A low price upfront can lead to costly issues later. Choose a contractor who’s experienced, insured, and easy to communicate with.
We’re Here to Build More Than Buildings
At Wojcik Builders, we believe construction is a partnership. That means working closely with business owners and developers to build projects and relationships that last. We take pride in making sure our contracts are clear, fair, and focused on success from day one.
Discover the Wojcik Difference
If you’re planning your next commercial building and want a construction partner who understands your priorities and protects your interests, let’s talk.
Call Wojcik Builders today at 440-786-1776 to start a conversation.
