What must a contractor and customer do before signing a construction contract?

• A. Obtain bids from subcontractors and suppliers
• B. Prepare critical path and Gantt charts for the project
• C. Arrange financing for the job with the bank or other lender
• D. Read and understand the contract

Answer: (D)

Before entering into a construction contract, it is essential for both the contractor and the customer to read and fully understand the terms of the contract. This step is crucial because the contract outlines the responsibilities, rights, and expectations of both parties involved in the project. Understanding the contract helps ensure that both parties are aware of the scope of work, payment schedules, timelines, and any legal obligations that may arise during the execution of the project.

A common oversight is signing a contract without comprehending its content, which can lead to disputes and dissatisfaction later on. Therefore, taking the time to thoroughly review and discuss the contract helps prevent misunderstandings and establishes a solid foundation for the working relationship between the contractor and the customer.

While obtaining bids, preparing project charts, and arranging financing are important components of the construction process, they are not prerequisites for signing the contract itself. The crux of any successful agreement lies in the mutual understanding of its terms, making it imperative that both parties invest the necessary time to read and comprehend the contract before proceeding.