Real estate development creates many opportunities for conflicts of interest and violations of contractual obligations. In each phase of your project, it is crucial to have very specific, well-crafted contracts to protect your interests and ensure that the contractors and subcontractors involved in the project understand the exact scope of their duties and the penalties for not meeting those expectations.
There are hundreds of ways that contracts in a large development can be violated, so it is always important to make sure that your contracts are professionally prepared and reviewed. Whether you are the party providing the contract or signing one from some other party, make sure that you truly understand the terms of the agreement and the penalties for violating those terms.
Construction and development contracts should always be specific enough to govern each aspect of the development, from the timeframe of the project, to the material costs, to specific penalties and remedies for various types of conflicts that might arise.
It is especially important to include language in your contracts that governs those specific penalties and remedies for violating the terms of the contract. Otherwise, you face the prospect of not only resolving the underlying issues, but agreeing on how to appropriately remedy the conflict at all.
If you are getting ready to begin construction, or considering some sort of development or building project, be sure to bring strong, well-crafted contracts to the table and understand their contents. It is always wise to consult with an experienced attorney who understands the industry and state-specific standards and guidelines for your project to keep your rights secure and protect your interests and goals.