Construction Oral Agreement

Construction Oral Agreement

A construction oral agreement, also known as an oral contract, is a verbal agreement made between two or more parties involved in a construction project. This type of agreement is not in writing and, therefore, can be challenging to enforce. However, construction oral agreements are valid in many jurisdictions, and the parties involved in the agreement can take legal action if the other party fails to comply.

Construction projects typically involve several entities, including the project owner, general contractor, subcontractors, suppliers, and vendors. The parties involved generally sign a written contract outlining the details of the project, including scope, timeline, payment details, and expectations. However, sometimes the parties may reach an agreement verbally, either due to time constraints or convenience.

Construction oral agreements usually involve minor project details such as changes in the scope of the project, delivery time, or payment schedules. These agreements are usually made informally, such as during a telephone conversation or a quick meeting. However, it is essential to note that even minor changes to a construction project can have significant outcomes, making it critical to document any modifications.

To enforce an oral contract, the party must provide evidence of the agreement, such as witness testimony, emails, and even a record of phone calls where the agreement was discussed. The evidence must show that the agreement was made and that both parties understood and accepted the terms.

Enforcing an oral agreement is challenging as the evidence is usually circumstantial and challenging to prove. To avoid disputes and misunderstandings, it is advisable for the parties involved to document all agreements in writing, regardless of how small they may seem. This helps to protect each party`s interests and ensures that the project is completed as agreed.

In conclusion, while construction oral agreements are valid in many jurisdictions, they are challenging to enforce in court. It is, therefore, advisable to document all agreements in writing to avoid disputes and misunderstandings. Additionally, parties involved in a construction project should consult with experienced construction lawyers to ensure that all agreements comply with the law and protect their interests.