What are Construction Contracts?

Construction Contracts are legally binding agreements executed between contractor and project owner which abide the contractor to complete the work within a stipulated time. Moreover, it also includes conditions and details regarding the mode of payment, cost of labor and material, working conditions, and many more.

Why there is a need for Construction Contracts?

Construction contracts are necessary for both the parties signatory to it because it specifies the nature and scope of work and clearly put an obligation on the contractor to complete the task within a stipulated time. Therefore, without a proper contract in construction work, there are chances of miscommunication, delay in payments, delay in work, and other concerns which can later transform into a major legal battle. Thus, having a construction contract safeguards the interest of all the party signatories to it and provides a discipline outline for completing the construction work.

How to draft a construction contract?

Drafting is a vital part of a construction agreement. A well-drafted construction agreement protects the rights of the party’s signatory to it and protects it from the scope of interpretation. Therefore, to escape from costly litigation proceedings, it is very important that a construction agreement must be drafted clearly and must contain all conditions and obligations. There are many disputes which arise from construction agreements wherein the rights of the contractor and owner of the project are being violated because the language of the construction agreement is ambiguous.

EuroMea Legal Services works in a highly proficient manner to draft construction contracts and secure the interest of our clients. Here are some of the key points required in drafting of construction contract:


  • Title of the agreement must be clear.
  • There must be correct details of business with address and names of the parties entering into agreement.
  • Definition clause must be there which can be used in case of any ambiguity.
  • Project description must clearly be mentioned.
  • There must be details about the completion date and commencement date.
  • Mode of payment whether partial, advance, or full must clearly be defined.
  • There must be responsibility clause which can determine the responsibility of owner and contractor in seeking approvals, bring material, providing documents and information.
  • There must be terms and conditions require for the termination of contract.
  • There must be information regarding expected number of labourers required or involved and their cost and living.
  • There must clause regarding exceptions to delay due to any force majeure or by act of God.
  • It must also contain solutions in the event of death or disability of any worker during construction work.
  • There must be a penalty clause in case of any delay by the contractor.
  • It must also contain dispute resolution clause which can specify the situation of laws applicable in case any dispute arise between the parties.

EuroMea Legal Services is always committed to providing the best advice and results to our clients. Therefore, in case you need any suggestions or help in relation to the matters related to Shareholders Agreements you can contact us freely. Our team is fully committed in order to perform their duty and in delivering the best results.