How Can Clear Payment Clauses Help You Avoid Disputes?

March 25, 2024

No one wants to deal with disputes during a construction project or after one is completed. So what’s the best way to avoid issues with all of the people and companies who are involved with your project? We recommend being clear in your contracts, especially when it comes to payment clauses. Everyone should know exactly what is expected of them and when their money will be on its way to them. Our Houston construction litigation lawyers can help you make better contracts that stave off payment disputes and other problems.

What Should Be Required When Seeking Payment?

A clear payment clause can tell everyone involved exactly what they need to do when they are seeking payment for their work. You can make sure that contractors and others involved in the project know that they will need evidence like:

  • Continuation sheets that show work performed
  • Daily reports about what was done on the site
  • Photographic evidence of completed work

The payment clauses in a contract should also specify how long someone will have to wait for a payment after presenting evidence of work being completed. If you agree to pay within a week or two, then you should pay within that time period. Now there is no reason for a payment dispute to arise.

How Can Clear Payment Clauses Keep a Project Running Smoothly?

Clear clauses can also help make the scope of work for each involved party more obvious. Everyone knows what they are doing and what needs to be done in order to get paid. Contractors and subcontractors do not have to waste time on the site. They don’t worry about stepping on each other’s toes or completing work that they were not contracted to do.

These payment clauses can also account for any unforeseen events. Sometimes things beyond your control can affect a construction project. Being clear about what will happen then and how people will be paid for their work is essential.

Do I Need a Lawyer to Write a Contract?

You have a lot of work to do on this project. There are many moving parts to keep track of and different parties involved that all have important jobs to do. It can be hard to ensure that your contract covers absolutely everything that can come up during construction and afterward.

This is why it can be a good idea to hire a lawyer to at least look over your contracts. They can point out any potential issues and show you how certain clauses could cause you legal headaches later. An attorney can also just draft contracts for you while you focus on what you and your construction company are good at.

Contact Our Construction Litigation Lawyers

So if you want to protect yourself and make sure that your latest project goes smoothly, contact Patout & Shaw. We can schedule a consultation and tell you more about what our seasoned lawyers can do to assist you.

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