A video explaining the formation and interpretation of The Construction Contract

When a construction contract, like every other contract, is unambiguous, the parties’ intent may be determined from the contract alone, and it is the duty of the court—not the jury—to state its meaning. [Peterson v. Continental Boiler Works, Inc., 783 S.W.2d 896, 901 (Mo. banc 1990).]Show more

Constru
ction contracts are governed by the same rules as all other contracts. When a court is called upon to interpret a construction contract its terms are given their ordinary and generally accepted meaning with the court working to give effect to the intent of the parties to the contract unless the contract itself gives special meaning to the contract.

A construction contract should always be written. It should, like all other contracts, set forth in detail the duties and obligations of the parties to the contract. It should communicate the scope of work to be rendered and the extent to which each party is involved in the differing aspects of the project.

Contracts serve as means of documenting the services and assets to be exchanged during the course of a project. The contract is important not only to finalize the deal in the minds of the parties to the construction project, but also to help define the performance of the work and may even determine who bears the tax burden.

A basic construction contract is negotiated by the parties and will be interpreted following the normal rules of contract interpretation.