What is a Pre-Construction Services Agreement?

A pre-construction services agreement is a contract between a contractor and a building owner that outlines the services and responsibilities that the contractor will provide during the pre-construction phase of a construction project. The pre-construction phase is the period before the actual construction begins. This agreement outlines the specific responsibilities of both parties, including the contractor’s obligations for providing services and the building owner’s obligations for reimbursing the contractor for those services. It also specifies the terms and conditions of the agreement, such as the duration of the agreement and the payment terms.

What Does a Pre-Construction Services Agreement Include?

A pre-construction services agreement typically includes the following information:

• The contractor’s responsibilities during the pre-construction phase, including the preparation of plans and specifications, the development of cost estimates, and the coordination of the project.
• The building owner’s responsibilities, including the payment of any fees associated with the contractor’s services.
• The duration of the agreement, including the start and end dates.
• The payment terms, including the amount that the building owner will pay the contractor for their services.
• Any additional terms and conditions that both parties agree to.

What Are the Benefits of a Pre-Construction Services Agreement?

A pre-construction services agreement can be beneficial for both parties. For the contractor, it provides a clear understanding of the services they will be providing and the payment they will receive in return. For the building owner, it ensures that the contractor is held accountable for their services and that they will be reimbursed for them. Additionally, it ensures that both parties are aware of their responsibilities, thus reducing the risk of any misunderstandings or disputes.

What Should I Consider Before Entering Into a Pre-Construction Services Agreement?

Before entering into a pre-construction services agreement, it is important to consider the following:

• The scope of the agreement. Make sure that both parties are aware of the services that the contractor will provide and the payment that the building owner will receive in return.
• The payment terms. Make sure that both parties are aware of the payment terms, including the amount that the building owner will pay the contractor for their services.
• The duration of the agreement. Make sure that both parties are aware of the duration of the agreement.
• Any additional terms and conditions. Make sure that both parties are aware of any additional terms and conditions that they have agreed to.

Conclusion

A pre-construction services agreement is an important document that outlines the services and responsibilities that a contractor will provide during the pre-construction phase of a construction project. It is important to consider the scope of the agreement, the payment terms, the duration of the agreement, and any additional terms and conditions before entering into one. By doing so, both parties can ensure that their interests are protected and that the project goes smoothly.