Contract Issues for Contractors and Subcontractors

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Sparks Law is dedicated to the service and advocacy for our clients. We look to bring you interesting and helpful topics for our friends and family in the construction industry. By providing knowledge we aim to best prepare and support our clients through their construction law needs.

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
    conditions clause.
  • 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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