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A Construction Contractor’s Contract Check List
A
checklist with some key commercial contracting issues identified can
be one valuable tool in the process of understanding and evaluating
the commercial risk in a customer’s proposed construction contract.
by Kit Werremeyer
President, Southernstar Consultants, LLC
It’s been said that a checklist creates laziness on the part of the
user. Fill out the checklist and if the results look okay for
whatever the checklist analyses, proceed and don’t do any further
analysis.
Performing a thorough analysis of the commercial risks associated
with a construction contract for a project requires some skill and
the ability to understand and evaluate the proposed commercial terms
and conditions in order to best protect the assets of the company.
Each construction project will have a different mix of commercial
risks associated with the project contract’s commercial terms and
conditions.
There is no such thing as a standard construction project. There is
also no such thing as standard commercial terms and conditions. As
such, it is difficult to develop an all-encompassing and
comprehensive checklist that would be appropriate for each and every
construction project and set of commercial terms and conditions.
Having a thorough knowledge of the typical risks associated with
commercial terms and conditions and having the ability to
independently understand and analyze these risks for each contract
is the best way to lower your commercial risk.
Having said all that, a checklist is simply one tool to use in the
contract analysis process. If it is used with some circumspection,
it will at least highlight some of the most common or typical
commercial risks associated with a construction contract. As long
as a checklist is used in conjunction with independent evaluation
and analysis of the commercial terms by the reviewer, then the risk
review process can be performed more efficiently.
One final point: use your own knowledge and skill—or the knowledge
and skills of others—to thoroughly understand and evaluate the risks
associated with each of the construction contract’s commercial terms
and conditions. After you sign the contract, it’s too late to
change those risky commercial oversights!
Here’s a checklist (in PDF format) of 11 important and commonly
encountered contracting issues, along with 54 clarifying notes, to
consider using as part of a comprehensive contract evaluation and
analysis process:
CLICK HERE TO DOWNLOAD THE CHECKLIST
Need assistance with training, negotiating or setting standards or
policy for construction contract commercial terms and conditions?
We can improve your ability to negotiate better commercial terms
that will help protect the assets of your company! Contact
Southernstar Consultants LLC at 813-653-3090 or
southernconsult@aol.com.
Copyright © Kit Werremeyer November, 2004, Revised February 2008.
Revised February 2009, Revised June 2011.
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