What is it?
Clause type | It governs the final agreed-upon structure and substance of an agreement, determining exactly what each party must do or receive.
built
Contract LawLegal glossary term
Quick answer
Built usually means completed according to specifications. In contracts, it matters because it triggers payment obligations and final acceptance. Before signing, verify exactly what constitutes completion and how inspections will be conducted.
Definitions
What is built?
Legal Definition
A contract or provision is built when its terms are fully established, agreed upon, and operative between parties. This establishment creates enforceable obligations that grant rights to specific individuals or entities involved in the agreement. The most critical qualifier here involves whether the construction adheres strictly to the plain language of the document itself.
Plain-English Translation
Building a contract means you've finished coloring inside all the lines on the permission slip. Once it’s built, everyone has to follow what the colors mean; no erasing allowed.
Contract relevance
Why built matters in contracts
Failure to properly build a provision can render the entire clause voidable or lead to litigation over interpretation. The non-compliant party bears the risk of having their obligations disputed in court.
Document context
Where built appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Construction Contract | Completion clause | Defines when final payment is due |
| Purchase Agreement | Delivery section | Specifies when goods are considered delivered |
| Real Estate Contract | Improvements section | Determines when property enhancements are complete |
| Building Code | Construction standards | Sets minimum requirements for what can be 'built' |
| UCC § 2-313 | Express warranties | Affects what is promised about built goods |
| AIA Document A201 | General Conditions | Defines completion obligations and procedures |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| The project shall be built to the specifications attached as Exhibit A" | The work must match the detailed plans | Verify the specifications are complete and clear |
| The equipment shall be built using only materials listed in Section 3.2" | Restricts materials that can be used | Confirm material list is comprehensive and allows necessary substitutions |
| The software shall be built with all features described in the functional requirements" | Defines what features must be included | Ensure requirements document is finalized before signing |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
Built to specifications"
Clearer wording
"Built in accordance with the detailed technical specifications in Appendix B
Vague wording
Built to code"
Clearer wording
"Built in compliance with the 2023 International Building Code and all applicable local amendments
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Verify exact definition of 'built' in the contract
2
Confirm inspection process and acceptance criteria
3
Identify who bears risk of delays beyond completion date
4
Check what documentation is required upon completion
5
Determine if 'built' includes all necessary permits and approvals
6
Clarify whether 'built' includes testing and commissioning
Party impact
How built affects each party
| Party | What this party should check |
|---|---|
| Owner | Should verify inspection rights and acceptance procedures |
| Contractor | Should ensure clear definition of completion criteria |
| Subcontractor | Should understand how their work contributes to 'built' status |
| Lender | Should verify completion milestones tied to disbursements |
Comparison
built vs similar terms
| Related term | Plain meaning | Main difference from built |
|---|---|---|
| Constructed | Created through building process | Focuses on method rather than completion status |
| Completed | Finished according to plan | Similar but doesn't necessarily imply meeting specifications |
| Substantially complete | Functionally usable | Less complete than 'built' but allows partial use |
| As-built | Actual construction as documented | Refers to records rather than the physical result |
Missing or vague
If built is missing or vague
If 'built' is undefined or vague in a contract, disputes may arise over whether the work is actually finished.
Contractors may claim completion while owners argue essential elements remain unfinished.
Without clear criteria, acceptance becomes subjective, potentially leading to withheld payments and litigation.
The lack of objective standards makes it difficult to resolve conflicts over whether obligations have been met.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions | Should contain precise meaning of 'built' with specifications |
| Scope of Work | Details what must be built and to what standard |
| Completion | Sets timeline and procedures for determining when work is built |
| Payment | Links final payment to verification that work is built |
| Acceptance | Defines process for confirming work meets built criteria |
| Warranties | Specifies what is guaranteed about the built work |
Visual model
Understand built fast
An explainer image has not been generated for this term yet.
01
Landlord signs a lease built to require monthly rent payments of $2,500; outcome is automatic eviction proceedings if payment fails.
02
Borrower executes a loan agreement built with a 6% interest rate; outcome is the lender having the right to demand full repayment upon default.
03
Franchisor and franchisee build a distribution contract requiring quarterly marketing contributions; outcome is the franchisor suing for breach if those funds are not remitted.
Document context
How built shows up in legal documents
Why does it matter?
Failure to properly build a provision can render the entire clause voidable or lead to litigation over interpretation. The non-compliant party bears the risk of having their obligations disputed in court.
When does it matter?
This state is achieved when all necessary elements—like mutual assent and consideration—are present, often upon the last signature date on the document.
Where is it usually seen?
It appears most frequently within operative clauses of commercial purchase orders, promissory notes under UCC Article 3, and lease agreements.
Who is affected?
The indemnitor gains a defined duty to pay if another party is sued; conversely, the indemnitee secures protection against financial loss from covered events.
How does it work?
First, parties negotiate and agree on specific terms. Then, they formalize these understandings into written language. Finally, the contract becomes 'built' when execution (signing) solidifies those agreed-upon obligations.
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Wikipedia
Built
Built may refer to: Built (TV series), an American reality television series that aired on the Style Network Built: the hidden stories behind our structures, 2018 book by Roma Agrawal Building
Open on Wikipedia →Knowledge graph
Where built connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
9nodes
Glossarypromissory notepromissory note often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause a...Glossarypurchase orderpurchase order often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause ar...Glossaryagreementagreement often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around...
BGRisk context hubGlossary meaning, document paths, and adjacent risk pages connected around this clause.
Use caseNDALegal & Corporate: Signing an NDA is easy. Understanding what you just agreed never to say is harder.Use caseCheck Consulting AgreementBusiness & Commercial Contracts: Check a Consulting Agreement for common risks and hidden one-sided clauses.Use caseAnalyze Service AgreementBusiness & Commercial Contracts: Analyze a Service Agreement online and spot risky wording fast.RiskEntire agreement clausePlain-English risk guide for entire agreement clause.RiskFinancial obligations clause riskPlain-English risk guide for financial obligations clause risk.RiskPayment terms contract risksPlain-English risk guide for payment terms contract risks.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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