Construction disputes often begin with misunderstandings that grow over time. Scope isn’t fully defined, responsibilities become blurred, and one party assumes risk another believed had been allocated elsewhere.
The construction contract is designed to prevent those situations before they happen.
To explore where projects most commonly go off track, AIA Contract Documents (ACD) hosted a webinar featuring a panel discussion on three contract provisions that consistently shape project success:
- Scope of work
- Standard of care
- Risk allocation
Our speakers included:
- Matt Viator, Assistant General Counsel at ACD
- Mike Koger, Associate General Counsel at Perkins&Will
- Courtney Haddick, Senior Associate Architect at FFKR Architects
Whether you’re an architect, contractor, owner, or subcontractor, these lessons can help you avoid costly misunderstandings before work begins.
Watch the Webinar Replay
Quick Decision Guide: Which Contract Provision Should You Review?
| If You’re Concerned About… | Start Here |
| Unexpected work requests | Scope of work |
| Questions about design responsibilities | Standard of care |
| Who pays when something goes wrong | Risk allocation |
| Preventing disputes before construction | All three |
Three Contract Provisions That Matter
Every construction contract covers hundreds of topics. Yet the panel agreed that many disputes trace back to just a handful of foundational provisions.
When these sections are clearly understood, teams communicate better, make faster decisions, and reduce the likelihood of expensive claims. When they’re misunderstood, small issues often become major project problems.
As Matt Viator explained throughout the discussion, the contract isn’t simply a legal document. It’s the project’s operating manual.
1. Scope of Work Creates Alignment Before Construction Begins
Nearly every project begins with enthusiasm. Problems begin when expectations aren’t documented with the same level of detail.
The scope of work establishes exactly what each party has agreed to provide. It defines responsibilities, deliverables, assumptions, and limitations.
Without a clearly defined scope:
- Owners may expect services that were never included
- Architects may perform additional work without compensation
- Contractors may encounter incomplete information during construction
- Subcontractors may inherit responsibilities they never priced
Mike Koger emphasized that ambiguity creates opportunity for disagreement. The clearer the scope, the fewer assumptions each party must make.
2. The Standard of Care Defines Professional Responsibility
One of the most misunderstood concepts in construction contracts is the standard of care. Many people mistakenly believe architects guarantee perfect drawings. They don’t.
Instead, the professional standard requires architects to perform services consistent with the skill and care ordinarily exercised by professionals practicing under similar circumstances.
Courtney Haddick discussed why understanding this distinction is critical. Perfection isn’t the legal standard. Professional judgment is.
Attempting to contractually guarantee flawless performance often creates unnecessary risk that may not even be insurable. Understanding the standard of care helps all project participants establish realistic expectations for professional services.
3. Risk Allocation Determines What Happens When Problems Occur
No construction project is completely free of risk. And successful projects aren’t the ones that eliminate risk. They’re the ones that allocate it intentionally.
Contracts identify which party is responsible for specific risks related to:
- Delays
- Site conditions
- Insurance
- Indemnification
- Design responsibilities
- Construction means and methods
When responsibilities are clearly assigned, project teams spend less time debating liability and more time solving problems.
The panel discussed how balanced risk allocation creates healthier project relationships because every participant understands their obligations before work begins.
Why Coordination Matters More Than Individual Clauses
One of the biggest themes throughout the webinar wasn’t simply understanding individual provisions. It was understanding how they work together.
A well-written scope influences risk allocation. Professional responsibilities affect indemnification. Insurance requirements support allocated risks. Construction contracts function as an integrated system rather than independent clauses.
Looking at one provision in isolation often misses the larger picture.
Common Mistakes That Lead to Construction Disputes
Throughout the discussion, several recurring themes emerged.
Projects become more vulnerable when teams:
- Assume everyone interprets contract language the same way
- Delay difficult contract conversations until construction begins
- Modify standard language without understanding downstream impacts
- Focus only on pricing instead of responsibilities
- Skip careful review because of schedule pressure
Many of these issues can be prevented during contract negotiations instead of managed later through claims.
What This Means for Your Next Project
Construction projects are successful when everyone understands how problems will be handled before they occur.
Taking time to review your scope of work, standard of care, and risk allocation provisions at the beginning of a project creates stronger collaboration throughout construction.
These aren’t simply legal concepts. They’re practical tools that help architects, contractors, owners, and subcontractors deliver better projects.
Watch the Full Discussion
Want to hear the panel’s real-world examples and practical advice?
Watch the complete webinar replay to learn how experienced construction professionals approach these critical contract provisions and what your team can do to reduce project risk before work begins.
Frequently Asked Questions
It defines each party’s responsibilities and helps prevent misunderstandings that often lead to disputes or change orders.
It requires architects to perform services with the ordinary skill and care expected of similarly situated professionals. It is not a guarantee of perfect results.
Clearly assigning responsibility before construction begins helps projects resolve issues more efficiently and reduces uncertainty when problems arise.
Learn more at www.aiacontracts.com. Subscribers have access to more than 300 industry-standard agreements, educational resources, AI Assistant, and contract management tools on the ACD platform.
