A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.
A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.
In Virginia, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor who is hired to manage and execute the construction of a residential or commercial building. The agreement typically includes detailed provisions regarding the scope of work, materials to be used, the contractor's responsibilities in hiring and overseeing subcontractors, payment schedules, completion timelines, insurance requirements, and the handling of mechanic's and materialmen's liens. Virginia law requires that certain contracts for construction, removal, repair, or improvements to property be in writing to be enforceable under the Virginia Statute of Frauds (Va. Code Ann. § 11-2). Additionally, the Virginia Construction Code provides regulations that must be adhered to in the construction process. It is important for both parties to clearly understand and agree upon the terms of the contract to ensure legal and financial protection, and they may seek the assistance of an attorney to draft or review the agreement to ensure compliance with all applicable state laws and regulations.