
Table 10.4 Key terms for construction documents.
Key term
Note
Scope of Work • Determine whether the contract is “turnkey” or for limited services only
• Determine what scope is excluded
Permits • Determine which permits the contractor will obtain
• Developer’s permit obligations to be listed
Payment Schedule • Can be either milestone based or on a monthly basis
• Monthly typically includes 5–10% retainage
• Determine whether the contract provides that achievement of milestone
is verified by an independent engineer
Ta xes • Determine whether sales taxes are included in the contract price
Cancellation Fees • Determine the cancellation fees, if any ...