By AIA Contract Documents
March 23, 2023
Construction projects are complex endeavors that involve many different parties, including owners, design professionals, contractors, subcontractors, and suppliers. With so many different parties involved, there are a variety of potential risks associated with construction contracts. Here are some of the key contract risks in construction that should be carefully considered before any work begins.
To mitigate these risks, it is important for all parties to carefully review and negotiate the terms of the contract prior to signing the contract. This should include a detailed scope of work, a clear payment schedule, and provisions for handling delays, disputes, and changes to the scope of work. It is also important to ensure that the contract includes provisions for health and safety, such as requirements for protective equipment and procedures for handling hazardous materials. The parties should always be aware of their rights and remedies under the contract.
Ultimately, the success of a construction project depends on effective contract management and a commitment to open communication and collaboration between all parties. By taking steps to mitigate contract risks, construction projects can be completed on time, on budget, and with a minimum of disputes and legal issues.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.