A construction contract is a legally binding agreement that outlines the terms and conditions between a contractor and a client. One critical aspect of any construction contract is the exercise of authority between the parties involved. Authority refers to the power or right to make decisions, enforce rules and regulations or take action. In a construction contract, there are three types of authority that can be exercised.
1. Contractual Authority
Contractual authority is the power that arises from the terms and conditions agreed upon in the contract. The contractor’s authority is limited to the work specified in the contract. They have the right to direct their employees, subcontractors, and suppliers to perform their duties according to the terms of the agreement. The client, on the other hand, has the power to approve or reject changes to the project`s scope, budget, and timeline. They can also enforce the terms of the contract if the contractor fails to comply.
2. Legal Authority
Legal authority is the power that arises from the applicable laws and regulations governing the construction industry. Both the contractor and the client must comply with any local, state, or federal regulations that apply to the project. Legal authority can also arise from court orders or decisions that affect the contract.
For example, if a dispute arises between the contractor and the client, a court order may be needed to resolve the issue. The court’s decision will have legal authority over the contract`s terms, and both parties will have to comply.
3. Professional Authority
Professional authority is the power that arises from the contractor’s expertise and experience in the industry. They have the responsibility to provide professional advice and guidance to the client throughout the entire project. The contractor has the authority to make decisions regarding the project`s design, materials, and construction methods based on their professional judgment.
However, the contractor`s professional authority is subject to the client`s approval and compliance with the contract`s terms. The client has the power to reject any proposed changes or modifications that go against the contract`s terms and conditions.
In conclusion, the three types of authority exercised in a construction contract are contractual, legal, and professional authority. It is essential for both parties to understand their respective powers and responsibilities to ensure a successful project outcome. As a professional, I recommend that you consult with a legal advisor to ensure that your construction contract complies with all applicable regulations and protects your interests.