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The Importance of a Construction Contract & What Is Included

Construction contracts; an important topic that we don’t think gets talked about enough – so in this blog, we’re going to explain why it’s important and why they’re imperative to defining a relationship between parties.

Closeup of hand signing paper workspace


A well-written construction contract can protect both the owner and the contractor and defines the scope of a new construction or renovation project. Additionally, it will act as an important tool to provide certainty, mitigate risks, and must have a clear definition of the scope of the project, which must include:

– The work that will be completed.
– The timeline for completion.
– Any specific requirements or specifications of the construction/renovation project.

These specifics help ensure that both parties are on the same page and that the project is completed as expected.


Outlining payment terms, as you probably already know, is important, but adding them to the contract will prevent any misunderstandings and disputes.

Cost details to add are:
– The total proposed budget of the project.
– Payment schedule.
– Possibilities of any penalties or incentives for early completion or delays.


The construction contract will include who is responsible for obtaining permits, insurance, providing materials, and will ensure compliance with local regulations.

As you can see, there’s lots that a contract can help with to keep a project on track and keep accountability for both parties to ensure the build or renovation turns out to the gold standard expected.

Additionally, there can be times where it may “seem” that everything looks good in a contract, so here are elements to look out for before signing off or proceeding:

– The scope of the project.
– Payment terms.
– Responsibilities of both parties.
– Change order: should changes to the original project scope be required, there needs to be a provision that mentions the process for evaluating, approving, and executing the change with additional cost and time.
– Insurance and liability: This is important as it will determine who is responsible for obtaining the workplace insurance.

Here at G Cameron, we go the extra mile to ensure that contracts constitute fairness and benefit both parties to give peace-of-mind during the building process so you get the project that you had envisioned.

From our small projects, like building a deck for a family home, to some of our larger projects, such as our current project of remote homes on the island, we complete each job with high-quality service and 100% customer satisfaction.

Contact us to make it happen and see why so many choose us here on Vancouver Island as their go-to construction contractor.

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