is all about Contracts
The contract is the single most important part
of a construction project. It spells out in detail all the possible
scenarios that may be encountered on a project.
The contract defines the responsibilities for
each participant and the rights and obligations associated with
Construction contracts are best reviewed and analyzed
by experienced construction attorneys. Primarily because there
are certain terms and conditions that are typical, but unique
to construction. With that understanding a construction lawyer
can spot problems much faster, or be sure to include clauses
to preserve rights or limit risk.
It comes as no surprise that when there is a problem,
everybody refers to the contract to see how to handle it. While
everybody wants a fair or concise contract, this does not always
By definition, a contract can be as simple as
a verbal agreement, or as complicated as several volumes of
documents. They all perform the same function, which is a mutual
agreement to perform or provide something for some sort of compensation
(consideration, in legal terms). The devil is in the details.
And, the better a contractor understands contract terms and
conditions, the better the contractor will be at managing his
or her risk.
There are different types of contracts for different
types of projects. Specifically, public works projects that
have to conform to strict laws, while private contracts can
be much more flexible. but may not be conducive to fairness.
In private contracts, it is often seen that the terms and conditions
are biased toward one party and not the other. There are contracts
that typically are written for owner to general, or general
Some contracts are written to strongly favor the
creator, and may have what are known as "killer clauses",
which are terms and conditions that put an unfair amount of
liability on one of the parties. Click
here to find out more about killer clauses.
As much as we would like for a contract to be the "rulebook"
for a construction project, sometimes things don't go as planned.
Some remedies for contractors such as mechanics'
liens are available, as are other types of liens for getting
paid. Expect a court battle to enforce these remedies though.
As for owners, if there are delays, then liquidated or actual
damages clauses help protect you. Holding retention until the
contractor has finished up and performed as promised is a typical
way for the owner protect themselves.
What a good construction attorney can do is work with the client
when the contracts are drafted, then negotiated, and finally
analyzed if there are disputes.
Call us now to discuss how you can benefit
by using a different approach to managing to your legal