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3 Top Reasons For A General Contractor Contract – Protect Your Business

A General Contractors contract serves as a Proof of Agreement between two parties. In this case, let’s look at a contract between your general contractor business and your client. Having a contract ready before a job starts means that both you (the general contractor) and the client have agreed on the type of services  and the inclusion of the terms.

Let’s look at 3 top reasons why you need a general contractor contract before starting a job.   


  • Get it in writing


Note that you can make a verbal contract, but it is preferable to put those verbal agreements into writing.  A Written Contract will remove the possibility of any of the parties going back on an agreed term, or even making new demands outside the contract. This is because there will be evidence of the initial agreement.

  • Lay it out


Another reason why it is important for a general contractor to get a contract before the commencement of any job is to ensure Clarity. A contract ensures that all of the terms, specifications, dates, materials required and write down other important details.  

Considering that a general contractor’s job must adhere to specific details, it is important to write out such details to remove all possibilities of ambiguity. This will protect your small business from many forms of litigation. This also serves as a checklist or reference on what to do while working.  Ultimately this will ensure compliance.


  • What is a General Contractors contract and why do you need it?


Another very important reason for getting a contract is to provide the security of easy enforcement. Contracts are legally binding agreements and courts can enforce them. This means that one of the parties can ask the courts to give an order against the other party to carry out their duty under the contract. 

This type of action will be easier where there is a document showing the express terms of a contract. As a general contractor, this will be particularly useful when chasing payments from a defaulting client. The court can, on the presentation of the contract, take appropriate measures. Even where the client is not defaulting, it is still a secure means of ensuring payment where the contract sum is large.

Do these 2 things

Of course, as a general contractor you could find yourself facing similar litigation.  So, besides having a contract in place, you should also prepare by investing in Contractors General Liability insurance.  In the unfortunate case where you are held responsible for damages that occur to a third party, you would be required to cover the entire cost of the injuries and damages. 

A General Contractors contract provides security against the client when the terms of the contract are not fulfilled. A contract leaves you in a better position to take a job from the client, because you are protected. Contractors General Liability insurance protects you if things go to court.

Having a policy will protect you against unexpected financial loss. Get a quick and free Contractors Liability Insurance quote from Contractors Liability.

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