Commercial Law Lawyer SE PA
Many people get involved in commercial real estate in Pennsylvania because of the income potential these types of investments provide. However, any legal aspect that has to do with commercial properties can be complicated, given all the laws, rules, and regulations there may be from the federal government, state government, and even the municipality the property is located in. This is why commercial investors should always consult with a commercial law lawyer in SE PA whenever they have any type of legal issue come up, no matter how big or how small the issue may seem.
Commercial Construction Contracts
One of the most common issues that come up with commercial properties is when there is any kind of construction needed. Whether the owner is refurbishing the property or remodeling to make it suitable for an incoming tenant, commercial construction is usually a significant expense of both time and money. In order to ensure that the work is completed as agreed, a property owner should enter into a construction contract with the contractor(s) who will be doing the work.
The contract should stipulate the scope of the work that is being done, the price of the project, how the price will change if unforeseen situations arise, and what the responsibilities of each party are. The contract should also stipulate a schedule for how payments will be made and what penalties for late payments will be.
As a SE PA commercial law lawyer can explain, there are four different types of commercial construction contracts:
- Time and materials: With this type of contract, the property owner will pay the contractor for the costs of labor and materials on a regular basis, usually daily or weekly. These types of construction contacts are usually used when the entire scope of a project is not really known.
- Fixed price/lump sum: With this type of contract, the total amount that will be paid to the contractor for the project is specified. Included in the contract is their estimate of the work, as well as a profit markup. Since the terms of these contracts are fairly rigid, they are only used for projects that will not likely have any changes and will be on a set schedule.
- Cost-plus: With this type of contract, the contractor is paid based on what the actual costs are to complete the project. All expenses for labor and materials are reimbursed. There is also an additional fee they will receive, either a percentage of what the total costs were or a fixed fee.
- Unit-pricing: With this type of contract, the contractor may stipulate what the exact costs for labor, tasks, and material will be. This allows the property owner to see specifically where every dollar is going. Unit-pricing contracts are usually only used on smaller jobs.
Contact Our Office Today
If you are a commercial property owner who is considering any kind of renovations, it is important to have a SE PA commercial law lawyer look over any type of construction contract you are thinking of signing. Call Hoegen & Associates, P.C. to see how we can help.