Reducing risk starts before the ground is broken on a construction project. Construction contracts are unique in that they anticipate change will occur during the project for a multitude of reasons. However, not even the built-in change clause can anticipate every problem. That is why good communication and clear expectations of the parties up front are essential to minimizing or avoiding risk.
This article discusses (1) negotiation of key construction contract terms (including scope of work, responsibilties of each party, and dispute resolution proceedures); (2) proper management of construction changes (including construction administration vs construction supervision, change orders, construction change directives, and project delays); and (3) termination of the construction contract (including for cause, for convenience, and wrongful termination).
Contract procedures under the AIA, EJCDC, and ConsensusDocs form contracts are also discussed.
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