Those in the construction business have certain responsibilities regarding their work and projects that are unique to their field and important to a successful operation. Schedules and details regarding materials, workers and waste management require a lot of planning and authorizing.
The right contracts and support documents are necessary to remain legal in the construction business. By being thorough, construction companies can stay protected and ensure happier clients because of details that are agreed upon before the work is even started.
Being familiar with these essential documents throughout the process of your projects can give you legal protection and aid you in meeting all of your responsibilities:
Business Plan for Construction and Excavation Company: A business plan is vital to the smooth operation of any business, but this template fits the unique needs of the construction industry. The business plan outlines company objectives, business strategy, marketing plans, management structure and financial concerns specific to construction companies.
Contractor Agreement: Construction companies often hire workers on an “as-needed” basis until the construction project is finished, rather than regular employees (learn more about the different between contractors and employees here). A contractor agreement is between an owner and a contractor, and it outlines the terms of the relationship before the contractor begins work. It specifies what will be done and covers every detail of the job and payment structure. A contractor agreement can be used for many types of workers, including metal workers, electricians, plumbers, engineers and day laborers.
Beginning and Amending a Project
Construction Contract: This agreement is used when contracting construction-related projects. It covers the scope of the project, including schedules and potential dispute resolution. The contract gives a thorough description of the work to be done and all of the terms and conditions of the project, making it one of the most important documents in the process.
The general conditions of the contract will include the obligations and rights during the project, such as who is responsible for finding and paying for materials and when the work will be completed. Special conditions may require certain clauses, like if something applies to one part of a project but not the entirety of the project.
Construction Work Authorization: This document is used when a property owner authorizes a contractor to perform work on a property. When entering into an agreement with a property owner who is contracting your work, a work authorization form guarantees that you will be covered by the owner’s insurance for any work performed on the property.
Construction Site Inspection Report: A site inspection report is used by a certified inspector at the planned construction site. The form ensures compliance with regulations concerning issues, such as erosion, sediment and run-off. During the inspection, the inspector can use this document to detail if any maintenance is needed and to make any other recommendations.
Waste Management Plan: This document sets goals for the management of waste throughout a project and outlines a plan for disposing of waste. It makes construction companies accountable and responsible for waste that is accumulated during the project, and it states what percentage will be recycled, as well as how hazardous and non-hazardous materials will be disposed of.
Construction Change Order Agreement: Occasionally, during construction projects, you may need to make adjustments to the original contract. A change order agreement is between a property owner and a contracted construction company, and it details changes that will be made to the construction plan and contract. The agreement lists what will be changed and addresses further costs and updated timelines.
Upon Project Completion
Certificate of Final Completion: In this document, the contracted construction company or worker states that the project is finished in accordance with contracts.
Affidavit for Mechanics’ Lien: This affidavit is used by a contractor or worker who has worked on a piece of property without compensation and wants to request payment for work performed.
Bill of Sale: While it doesn’t apply to managing construction sites, everyone in the construction industry will most likely come across a Bill of Sale at some point. Whether purchasing or selling mechanical equipment, heavy machinery or property to be renovated, a Bill of Sale is critical for clearly outlining the terms and conditions of a sale.
While this collection of documents is thorough, there may be other documents that you will need to refer to from time to time while operating a construction business. For more, refer to this collection of essential construction documents.