Errors or delays have a negative impact on both owners and contractors, resulting in additional costs for owners, as they cannot use the property on the date set for the intended purpose and incur additional costs for the contractors` work and equipment. If the arbitration clause is mentioned in the agreement, the dispute should be settled amicably. You should understand that an arbitration procedure is the least expensive and that the agreement is quickly concluded. If you sign the agreement with the arbitration clause, you do not have the right to take the matter to court. Construction delays can be protected by the contracting authorities with a lump sum compensation clause in their agreement. Lump sum damages are a fixed amount per day that the contractor pays to the owner for each day of delay in construction. Instead of negotiating damages in court, owners and contractors can agree in advance on a lump sum of damages. A construction contract is a written document between a landowner and a general contractor indicating the work, renovations, modifications or other work to be done on the land owner`s house or land. This document describes the parties who are responsible for paying the price to be paid, the duties of each party and the date on which construction begins and is completed. The agreement should be prepared by experts and the development of standards should be maintained in order to protect the interests of both parties. The date of signature of the contract must be displayed at the top of the page. The date of occupation of the site by the contractor should be fixed in the agreement.
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