Experienced Kansas City Construction Law Firm

Creating a valid construction contract in Kansas

On Behalf of | Apr 2, 2015 | Commercial Real Estate, Construction Defects, Contract Disputes

When two parties agree to a construction contract, the terms of that contract must generally be in writing. This is because most states have what is known as a statute of frauds, which is aimed at reducing the number of fraudulent claims related to large contracts. In the event that a contract does not need to be put into writing, any changes to the deal may need to be written down.

The scope of the deal may determine if the contract needs to be in writing. For instance, if the cost of construction is over $500 or if any materials cost $500 or more on their own, there may need to be a written purchase agreement. Long-term contracts that may take more than 12 months to honor may also need to be put into writing.

Real estate deals or any deal that is being financed by the contractor often need to be put in writing. Deals that are supposed to be in written form that are not written down may not be enforced in a court of law. If any part of a contract is changed, both parties must acknowledge that the changes apply to the entire deal. This reduces the odds that one party will claim that there was a separate oral agreement in place.

Those who are involved in a contract dispute may wish to talk to a business law attorney. An attorney may be able to review the deal to determine if it was breached and what the possible remedies may be if the contract was breached. In some contract law cases, it may be able to settle the case through informal negotiations outside of court, which could result in the dispute being resolved in less time.