A well-drafted construction contract clearly sets out the work to be done, the price to be paid for the work, and the terms and conditions of payment.
The contract should also designate various foreseeable risks between the parties. When the parties allocate a list of potential risks, the contract becomes longer, but it reduces the potential for disagreements in “gray areas” that are not addressed at all – assuming that both parties take the time to read and understand the lengthy, dryly-worded document.
You should be aware that all of the requirements of basic contract law must be met for a construction agreement to be valid. We will focus here on construction-specific applications of contract law.
read the entire article at: The Anatomy of a Great Construction Contract « Ontario Home Builders.