In such cases, the inspection report becomes a condition precedent for the client to pay the contract price. Failure to fulfill the condition precedent will result in the client not being bound by the minor works agreement.
Therefore, you must carefully choose the kind of contract you want to use and ensure that you are protected in case the client does not fulfil his obligations. This is why a minor works agreement is generally not used for construction projects.
In other cases, the client may not be present during the construction process but still want to be involved in the project. As a result, the project becomes an “all-inclusive agreement”, wherein the client is not only present but also has the right to approve the work of the construction project. Such a construction project will require a turnkey agreement to state the client’s responsibilities and the contractor’s responsibilities.
One important factor to consider is whether or not the client will be present during the construction process of the project. In such cases, the client would require an inspection report to be done before the construction starts. This report will state whether or not the project was completed according to the specifications and the terms of the contract.
If you are aware of the deadlines for each phase of your construction project, you can calculate the total cost of the construction project by adding up the cost of materials and the cost of labour. In such a case, you could estimate how much you will need to pay as a contractor if the client does not pay the contract price for the project.
We are currently running an important blog that will explain how to write a construction contract agreement. All you have to do is subscribe to our blog to get the latest updates. You can also download our download page to download the agreement as a pdf file.
If you are unsure about what a minor works agreement is you could get more information by talking to a registered building contractor who can advise you on the best contract to use for your project.
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