If you’re a business owner in New Jersey, there’s a good chance you’ll have to negotiate a construction contract at some point. It can be a challenging task, but with the right information, you can do it successfully. Some tips you could use include:
Understanding and applying New Jersey State laws regarding contracts
To ensure that the contract is legal and binding and that both parties are protected, you must adhere to New Jersey’s state construction law regarding contracts. These laws are in place to help prevent fraud and other illegal activity.
Some important ones are:
- Having all contracts must be in writing to prevent misunderstandings and ensure that both parties are clear on the terms of the agreement
- Both parties must be over 18 years of age and of sound mind
- Both parties must willingly sign the contract
- The contract must be witnessed by a third party to provide an extra level of protection in case one of the parties tries to back out later
Knowing what you want before you begin negotiations
Before the negotiations begin, make a list of your goals and priorities. Mention them during your talks to ensure all the other parties know what you are looking for in the deal. It’s also important to have a realistic idea of what you’re willing to compromise on without it affecting your goals. This way, you’ll be more likely to get what you want in the end.
Doing your research
It’s also essential to learn as much as possible about the construction industry, the other party, and the project itself. The more information you have, the better equipped you’ll be to make informed decisions and negotiate a favorable contract.
Being prepared to walk away
If the other party isn’t willing to budge on your key points, it may be best to walk away from the deal altogether. It’s better to have no deal at all than to sign a bad one.
Your business success is dependent on how well your contracts are made and your adherence to the terms within them. However, before you agree to anything, please remember that it can be very difficult, sometimes even impossible, to change the terms of a contract. So it may be helpful to be certain of what you are getting into before making it official.
