I came across a Linked-In post the other day in which an attorney was asking whether he should add any extra language to an AIA agreement between the owner and contractor. This question got me wondering how many construction companies ponder the same question.
Here are some questions to think about as you wait for the holiday party to start. Should your attorney review the contracts you are signing? And, if you are not having the contracts reviewed, do you know what you are agreeing to and what claims you are waiving?
When I review construction contracts, I think it’s important to ask a lot of questions. Just a few are:
- Are the insurance and indemnity clauses consistent with the insurance coverage in place?
- Will anyone be posting a bond to ensure payment?
- Can you fulfill your own bonding requirements?
- Does the scope of work provision really cover what you think it does?
- What are the lien waiver requirements, both partial and final?
- Are there any LEED certifications?
- Who is responsible for obtaining LEED certification?
- Are there any unique change order requirements?
Construction contracts can be very complicated. And the situation will not be improved if you are not using competent counsel to review your contracts. Before you sign your next contract, make sure you are asking the right questions, and ideally getting correct answers.