Why Do You Need A Commercial Contract in Construction?

It is essential to regulate a contractual situation in writing and even more critical in the construction industry, where there are often multiple contractors in the chain and long-running and complex projects.

A commercial contract will set out clearly what is required during the process of the works and remove ambiguity as much as possible. A commercial contract will protect the contractors’ and payers’ interests and also set out timescales for payment.

Clear contract clauses will minimise the likelihood of a dispute, which is one of the most damaging and costly situations to arise, both in terms of the completion of the project and the maintenance of cash flow for the contractor’s business.

Construction projects are notoriously complicated and dispute-prone, so a well-drafted and strategic contract is far more likely to lead to a happy outcome and prompt payment.

It is unusual to complete a construction project without some disputes. Alongside a well-drafted contract, it is essential to have prompt and professional legal advice on hand to help with any negotiations or problems which arise along the way. Experience legal advice can also help you strategically manage unforeseen difficulties.