Construction Law

Tips for Construction Contract Review Part 2

Whether it’s meeting deadlines, dealing with a labor shortage, avoiding safety citations, or a variety of other job-related risks, contractors have a lot of important things to consider on a daily basis. As we discussed in the first part, one thing every construction professional wants to steer clear of is a one-sided contract that puts the contractor at risk. When you partner with a Memphis contractor lawyer experienced in contract review, they will know how to ensure that your contract fairly balances the expectations and responsibilities of your role on the project.

As we will discuss in this article and the third part, the contract needs to clearly articulate everything from price points to expectations for deadlines to termination options and other important terms and conditions. Before we delve deeper into some of the contractual language that can become lost in a written agreement, lets first cover a few important aspects at the forefront of every contract.

The Importance of the Scope of the Work  

As construction projects can have countless talented construction professionals working together, it’s critical that every contract clearly defines the specialized role that each professional provides for the project. For example, if a subcontractor’s contract has an ambiguous description of the services they will provide, this could lead to a dispute between the subcontractor and the general contractor. It’s critical that each professional working on a project has an accurate description of the scope of work they will provide for the client and that the description is confirmed in writing. This provides each contracting party with an accurate understanding of the expectations of these services.

Deadlines and Payment

Along with a clear definition of the scope of services the professional will provide, the contract should feature the specific time expectation of completing the work. When will the contractor reach certain milestones? What adjustments will be made during delays? What happens when delays are caused by elements beyond the contractor’s control? The contract should include the answer to all of these question and also define the specific way the professional will be compensated for their work. In order to ensure timely payment for services performed, construction professionals should have a progress payment system in place. Along with a well-defined payment plan, there need to be clauses related to the circumstances of delays and other issues that may result in the termination of the project or the termination of the agreement.

If you would like to speak with one of our Memphis contractor lawyers, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.