Everything you need to know about construction contracts
If you work in the construction industry, then you already know how important contracts are. Although construction contracts have changed over the years, there are still some basic guidelines to follow when creating a contract.
Here are just a few details your construction company needs to remember when drawing up a contract:
Construction Contracts: A Changing Landscape
Construction law has changed over the past few decades, which has drastically affected the way construction contracts are written. For example, governing laws for each state require different contract provisions; which only adds to the depth of what's included in construction contracts.
In addition, there are a growing number of categories and sub-categories a construction contract must cover. This includes payment timelines, suspension of work guidelines, retention provisions, lien rights, and indemnification regulations.
If your construction company wants to draw up the most accurate contract possible, it's important to research the governing laws within your state. Along with state guidelines, there are a number of other contract specifics to keep in mind.
Common Contracts in Construction
Before you draw up a construction contract, you need to decide which type of contract best fits your project. The article "Construction Contracts: Why You Need to Know the Differences" describes the three most common types of construction contracts: lump sum/fixed price, cost plus, and time/material.
Each contract type has its own benefits as well as its own drawbacks depending on the scope of your project.
By taking each into consideration and comparing them against your company's needs, timeline goals, and costs, you'll have an easier time choosing which contract best fits the job at hand.
If your construction company is part of a particular labor union, there are specific guidelines you should include in your contract that go beyond the contracts mentioned above. Most unions require certain expectations to be met in order to commence work.
These expectations include employment conditions set forth by the union shop, seniority and overtime guidelines, no discrimination policies, and grievance procedures. Making sure you include all of these expectations in your union contract is an important part of the process.
Also included in your construction contract should be the type of workers you'll be hiring. In the construction world, there are generally two types of workers: subcontractors and direct hire workers.
Take note of:
- Subcontractors - Hiring subcontractors is the most common type of hiring, however it does come with additional contract obligations. Because subcontractors use their own equipment and are independently licensed, these stipulations need to be outlined in the construction contract. Failure to do so could lead to a lawsuit if an issue or dispute does arise.
- Direct Hire - If you're looking to build your construction company's workforce, then direct hires are a wise choice. However, because your workers are directly employed through your company, there are a few clauses you need to include in your contract. Most of these clauses have to do with work rendered and your payment practices.
By keeping in mind these contract pointers, your construction company will stay on the road to success.
Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including contract law and the construction industry.
Environment Agency clamps down on plastic films and wraps
Businesses in the waste and construction industries must ensure they deal with waste plastic properly to stop illegal exports, the Environment Agency (EA) has warned.
The warning comes as the Agency is increasingly aware of plastic film and wrap from the construction and demolition sector being illegally exported.
Exports are frequently being classified as ‘green list’ waste of low risk to the environment, but are often contaminated with materials such as mud, sand, bricks and wood, posing a risk to the environment and human health overseas, and undermining legitimate businesses in the UK seeking to recover such waste properly.
During the last year, the EA has intercepted shipments to prevent the illegal export of this material on numerous occasions. The Agency inspected 1,889 containers at English ports and stopped 463 being illegally exported. This, combined with regulatory intervention upstream at sites, prevented the illegal export of nearly 23,000 tonnes of waste.
Those convicted of illegally exporting waste face an unlimited fine and a two-year jail sentence. But construction firms could also face enforcement action if contaminated construction and demolition waste plastic is illegally exported.
Malcolm Lythgo, Head of Waste Regulation at the Environment Agency, said it is seeing a marked increase in the number of highly contaminated plastic film and wrap shipments from the construction and demolition industry being stopped by officers.
“I would strongly urge businesses to observe their legal responsibility to ensure waste is processed appropriately, so we can protect human health and the environment now and for future generations. It’s not enough just to give your waste to someone else - even a registered carrier. You need to know where your waste will ultimately end up to know it’s been handled properly. We want to work constructively with those in the construction and waste sectors so they can operate compliantly, but we will not hesitate to clamp down on those who show disregard for the environment and the law.”
There are a number of simple, practical steps that businesses can take to ensure that C&D site waste is handled legally.
Construction businesses should check what’s in their waste
- Different waste types need different treatments and so must be correctly categorised to ensure it goes to a site that is authorised to handle it safely. Businesses can also check if their waste is hazardous as different rules might apply.
- If you are removing the waste yourself, you must be a registered waste carrier- registration can be carried out here. When a waste collector is transporting your site waste, you must check they have a waste carrier’s licence from the EA.
- You must also check that the end destination site any waste is taken to is permitted to accept it and has the right authorisations in place. Keep a record of any waste that leaves your site by completing a waste transfer note or a consignment note for hazardous waste which record what and how much waste you have handed over and where it is going.
Waste management industry must adhere to export controls
- Contaminated C&D waste plastic - including low-density polyethylene (LDPE) wrap and film - must be exported with prior consent from the EA as well as competent authorities in transit and destination countries.
- Those involved in the export of such waste must ensure that it meets the requirements set under the relevant export controls, such as being almost free-from contamination; the destination sites are appropriately licensed to receive and treat the waste; and waste is correctly managed once received.
The EA will continue to actively target those who export contaminated C&D plastic waste illegally, including any accredited packaging exporters who issue Packaging Waste Export Recovery Notes (PERNs) against such material in breach of their Conditions of Accreditation.
Businesses involved in the shipment of waste are required to take all necessary steps to ensure the waste they ship is managed in an environmentally sound manner throughout its shipment and during its recycling.
Anyone with information regarding the illegal export of waste including C&D waste plastics can contact the EA’s Illegal Waste Exports team at: [email protected] or anonymously via Crimestoppers on 0800 555 111 or via their website