A building and construction contract must fulfill the same requirements as any other type of contract in regard to the following necessary elements:
" an agreement;
" between competent parties;
" based upon the genuine assent of the parties;
" supported by consideration;
" made for a lawful objective; and
" and in the form required by law.
Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.
The Wisconsin Basic Building and Construction Contract between Owner and Contractor is a legally binding document that outlines the terms and conditions for a construction project in the state of Wisconsin. This contract serves as a comprehensive agreement between the owner, who is typically the party seeking construction services, and the contractor, who is responsible for executing the project. It ensures the smooth execution of the construction project by delineating each party's rights, responsibilities, and obligations during the building process. This type of contract typically includes key elements such as project scope, timeline, payment terms, dispute resolution procedures, and termination clauses. It serves as a blueprint for construction projects, providing clarity and protecting the interests of both parties involved. Some different types of Wisconsin Basic Building and Construction Contracts between Owner and Contractor are: 1. Lump Sum Contract: This type of contract involves a fixed and agreed-upon contract sum for all work provided by the contractor. The owner pays the contractor a predetermined amount upon completion of the project, regardless of the actual costs incurred by the contractor. 2. Cost-Plus-Fee Contract: In this type of contract, the contractor is reimbursed for the actual costs incurred during the project, including labor, materials, and equipment. Additionally, a prenegotiated fee or percentage is added to cover the contractor's overhead and profit. 3. Unit Price Contract: This contract is based on predetermined unit prices for specific items of work. The owner pays the contractor based on the quantities of each unit completed. 4. Time and Material Contract: This contract is commonly used when the scope of work is uncertain or subject to change. The contractor is reimbursed for labor, materials, and equipment at specific rates, plus an agreed-upon fee. This type of contract provides flexibility for adjusting project requirements as needed. It is essential for both the owner and the contractor to thoroughly review and understand the Wisconsin Basic Building and Construction Contract before signing it. This contract not only protects the rights and responsibilities of both parties but also helps to establish a transparent and fruitful working relationship throughout the construction process.
