Most construction project finances are handled by a third party, typically a title company or a bank, which acts as fiduciary, receiving and approving all contractor payout requests. Think of the Escrow Agent as the umpire between the contractor team and the owner team.
The Contractor’s Sworn Statement is a sworn affidavit provided by the general/prime contractor to the project owner.
Under Illinois law, a contractor who adds value to a project by providing labor and/or materials has a statutory right to place a lien on the project property and to foreclose on that lien (forcing the sale of the property) to receive payment for the contractor’s services. The Waiver of Lien serves as a legal release of this statutory mechanic lien right’s when the sub-contractor receives his payout.
The Contractor’s Affidavit is a sworn statement that is notarized and signed by the contractor
or sub-contractor who submits it in support of a payout request.
The five requirements needed by the state of Illinois in order for an extra to be accepted as valid
Let’s take a closer look at changes that come with a cost, also known as “extras.” These extras are any modifications in the project that increase the contractor’s bottom line. For this reason, he’s entitled to extra payment.
The change orders form is also essential when it comes to detailing any alterations in the job’s scope of work. Like the waiver of lien and contractor’s affidavit, you must have a change order for each adjustment.
The Punch List contains touch-up items that need to be repaired or completed before the job graduates to final completion.
Every warranty is unique and must be explicitly defined in your construction contract. There are 6 parts to a warranty.
“The Construction Phase.” This stage involves the actual “brick and mortar” work and the processing, approval and payment of the written payout requests of the contractor, sub-contractors and material suppliers (i.e. materialmen).
…the significance of a construction contract. In basic terms, this agreement addresses every aspect of a particular construction project while representing each party fairly. Before any work begins, it is critical for a contract to be in place.
The Construction Contract should clearly define the rights, responsibilities and remedies of the parties…
Through the use of a solid written contract and related time-tested Construction Management paperwork, your project will be equipped to handle any issue that may appear along the way.
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