From Contract to Payment Plan: Checks Before You Decide
Clearly defining rights, responsibilities and financial terms is the foundation of a secure partnership in urban transformation. Every document to be signed should be understandable, measurable and assessed for the specific project.
What the contract should clearly include
The contract should clearly state the project scope, independent-unit specifications, materials, work schedule, handover terms, delay provisions, project changes, guarantees and the responsibilities of each party.
Guarantees and handover terms
The scope and validity period of each guarantee, and the circumstances in which it can be used, should be explained clearly. Handover should not be defined by a date alone; the work to be completed and the documents to be provided should also be specified.
Understand the total cost
Payments to be made by property owners, payment dates, potential additional costs and responsibility for each expense should be documented from the outset. The financial plan should be assessed against different scenarios.
Seek expert advice before signing
Contracts and financial obligations vary by project. Legal and financial expert advice should therefore be obtained before signing.
Checklist:
- Project and construction scope
- Independent units and allocation principles
- Payment plan and additional costs
- Guarantee and delay provisions
- Handover terms
- Change and approval procedure