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This article is part one of a four part series that Sparks Law will be sharing with our amazing clients and followers. Feel free to leave your comments below!
I generally follow a “put it writing” rule, which means that if
something is in writing it is more than likely to be achieved. Whether
you are a list-maker or a goal-setter, your efforts will be rewarded if
you put those lists and goals in writing.
In this first part of a four-part series, I will share some of the
contract issues for contractors and subcontractors to review before
signing a construction contract.
The top five include:
- Site Conditions Clause: Make sure that the
Contractor is not taking responsibility for unforeseen or differing site
conditions, and that costs for such site conditions are compensable.
You should also make sure that additional time is also a remedy.
- Surveys and Geotechnical/Subsurface Conditions Reports:
Whose responsibility is it to do the report? Does the contract
provide that Contractor can rely on the report? If not, understand that
the Contractor is assuming the risk. If Owner procured the report, do
not permit the Owner to disclaim responsibility. If Contractor procured
the report, make sure that site conditions reported serve as the
baseline for what is a “foreseen condition” in relation to the site
- No Damages for Delay Clause: This provision states
that the Contractor is not entitled to recovery any damages for delays
caused on the project. It is in the Contractor’s best interest to
delete this provision. If the Owner won’t budge, suggest that
Contractor be entitled to recover actual, documented costs for
Owner-caused delays. Contractor should not have to absorb Owner-caused
delays or delays caused by others.
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