1. Bid Alternatives
In some cases it may be desirable to have bids on portions of a complete construction job as well as the entire project. When funds are limited, a farmer may want the option of using his or her own labor to do site preparation or equipment installation work to keep costs down. Bid alternatives provide a basis for selecting those jobs that can save the most money.
2. Duties of the Contractor
What is the contractor expected to do? On most projects, the contractor supplies all labor, equipment and materials to complete the structure.
3. Duties of the Owner
If any of the work, equipment or materials is to be supplied by the farmer, it should be specified. Usual inclusions are providing electrical power, telephone service and water required during construction. The owner or a representative also should be available at specified times for consultation or interpretation of plans and specifications.
4. Drawings and Specs
No building should be constructed without a complete set of drawings and written specifications. These may be supplied by either the owner or the contractor and should be included as a part of the written contract.
5. Shop Drawings for Fabricated Equipment
Many farm structures contain equipment that is designed and built specifically for the particular building. To facilitate service at a later date, the owner should be provided with a set of plans for any non-standard items of this type.
6. Laws, Permits and Regulations
Design and construction should conform to all applicable laws and regulations. Normally, it is the contractor's responsibility to adhere to these. Required permits (if any) may be obtained by either owner or contractor. Make sure you know who is responsible.
7. Changes
Nearly every building constructed will experience some changes from original plans and specifications. Both owner and contractor need to agree on procedures to be followed in accomplishing changes. Procedures should include details on initiation of changes, revision in plans and specifications and contract price revision necessitated by the change.
8. Insurance
There are four general types of insurance coverage required to afford complete protection during construction: Workmen's Compensation Insurance, Public Liability and Property Damage Insurance, Owner's Protective Liability and Builder's Risk Insurance. Make sure that either you or the contractor is responsible for securing adequate risk protection.
9. Payment
The written contract should specify the method and time of payment for the project. It is common for large projects to require payment of portions of the contract price at specific points during the construction process, with the final payment due on completion. Make sure the contract specifies who is responsible for payment of subcontractors on the project.
10. Time Schedule for Completion
For some construction projects, particularly those involving animal housing, it is essential that a completion date be known well in advance. If necessary, make sure both you and the contractor understand when the building is to be ready for owner acceptance.
Source: "Selecting and Working with a Farm Building Contractor," University of Missouri Extension, G1005, 1993.