How to draw up a simple contract between a company and general contractor for building construction

Asked over 1 year ago - Memphis, TN

percentage to pay to a purveyor of new equipment who is to receive 5% mark up

Attorney answers (5)

  1. Frank A. Natoli


    Contributor Level 20


    Lawyers agree

    Answered . I am really not sure if there is a question here that can be answered.

    If you do not understand how to properly draft a legal agreement, and unless you have a lot of experience in this there is no reason why you should, you should hire a local professional to handle that for you, or take the contract someone else prepared to a lawyer so it can be reviewed.

    Most of us here, including myself, offer a free phone consult.

    Best regards,
    Natoli-Lapin, LLC
    (see Disclaimer)

    The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the... more
  2. Arnold Garson Cohen


    Contributor Level 15

    Answered . I heartily agree with the other two responses. I find construction contracts between owner and contractor to be some of the most complex and demanding contracts that I prepare or review. And that is true even when an architect is involved and uses AIA forms. Since at least 1989 I have made extensive revisions to many AIA contracts and versions of the General Conditions. Sometimes most of my proposed changes are accepted and occasionally not and sometimes we have significant negotiation to agree upon specific language. For me that is a time and labor intensive process. Once when a client needed a quicker turnaround than I could do and still perform what I considered proper work on a large dollar project, the client engaged a lawyer who could respond much quicker; the project wound up in litigation, and I still do much of the legal work for that client. If the building is more than a simple, small concrete block box on flat land or if you stand to lose substantially [you define that] if the project tanks, then for sure you should have an architect and lawyer involved. On the other hand, if you would confidently perform surgical removal of a probably benign tumor on yourself, then maybe you can do without the professional help and save the fees. Good luck.

    These comments do not constitute legal advice. They are general comments on the circumstances presented, and may... more
  3. Griffin Scott Dunham

    Contributor Level 7

    Answered . I agree with the other answers. You're entering a for-profit business endeavor, so the contract that governs the terms should be considered an investment/expense that's necessary to maximize value or protect your interest in the enterprise. I've seen clients literally have to spend hundreds of thousands of dollars in litigation because they trusted Google to find contracts. Don't fall into the trap.

    If you want to avoid the transaction cost as much as possible, my suggestion is to do one of two things: (i) draft a term sheet that includes all the key provisions, and then let a lawyer insert these terms into a prevously relied upon template; or (ii) use all the resources available to draft a workable contract, and then pay a lawyer to review/modify the contract to make sure your interests are adequately protected. These measures should give you a benefit, but keep costs down at the same time. Best of luck.

    This answer does not create an attorney-client relationship. This answer is not legal advice and must not be... more
  4. Matthew Erik Johnson

    Contributor Level 17


    Lawyer agrees

    Answered . Contracts between a company and general contractor are never simple, unfortunately. They may seem so, but in reality there are hundreds of potential pitfalls and traps that have gotten companies and general contractors into massive legal battles, and even battles with the client over poor wording.

    You should really sit down with both an attorney and negotiate a contract that has all the wording and formalities necessary in this type of deal. It may seem expensive, but any experienced and successful contractor will tell you otherwise.

    Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale... more
  5. Thomas Richelo

    Contributor Level 14


    Lawyer agrees

    Answered . A lawyer who helps you with this project may also give you a tool you can use for other situations, if you regularly are involved in them. The advice you can get may be worth as much or more as the contract that can be developed. I agree there is usually no perfect contract, but perhaps your lawyer can get you a standard form that covers a lot of the concerns you might otherwise have. Good luck.

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