Detailed And Thorough Construction Contracts Can Make A Difference
Contracts are the linchpin for success in any construction venture. They are critical to establishing expectations, charting a course of action, defining responsibilities, and outlining remedies. Because of their central role, construction contracts require careful review and meticulous detail.
At Long & Robinson, LLC, a construction law practice based in Kansas City, our attorneys understand construction contracts and general contract law. Our long-standing experience in the construction law field gives us valuable insight into avoiding pitfalls and managing risks through effective contracts. We provide thorough and practical guidance for general contractors, subcontractors, developers and other construction clients.
We welcome you to contact us to set up a meeting and get the support you need for your construction contract. We are here to help.
Proactive Strategies For Success
Our firm provides strategic legal services in negotiating, drafting, reviewing and enforcing construction contracts. We routinely advise clients on the elements of a solid contract that will set the stage for success rather than failure, confusion or ambiguity.
Creating a watertight contract is an important proactive strategy for any type of construction project. However, drafting contracts requires a keen eye for detail. Our lawyers can carefully craft and analyze the legal effect of common construction contract clauses such as:
- Indemnity provisions
- Liquidated damages provisions
- Scope of work provisions
- Payment schedules
- “Pay-if-paid” clauses
- “Time is of the essence” clauses
- Delay and extension clauses
- Subrogation clauses
- Bond and warranty requirements
- Dispute resolution requirements
- Choice and law of the forum
- Attorney fee provisions
Our familiarity with the construction industry and the business considerations our clients face enables us to provide focused and nuanced guidance. We combine expertise and collaboration to achieve outstanding results.
“When a contractor faces a construction dispute, they want someone who not only understands the law but, more importantly, understands the construction business. Scott Long rises to the top in that regard. He is a superb construction lawyer who gets things done, and we sincerely appreciate him being on our team.”
– L.D. and Kendall Schoonover, Wilcott Construction, Inc.
Construction Contracts: Key Provisions Explained
When drafting or reviewing construction contracts, it is crucial to understand the specific clauses and provisions that define the rights, responsibilities and liabilities of all parties involved.
Indemnity provisions
Indemnity provisions outline the obligation of one party to compensate the other for harms or losses incurred in connection with the contract. In a construction contract, these provisions typically require the contractor to indemnify the owner against claims arising from injuries to persons, damage to property or violations of law that occur due to the contractor’s actions or negligence during construction. It’s important to carefully negotiate these clauses to ensure that the indemnity is fair and does not expose a party to disproportionate risk.
Liquidated damages provisions
Liquidated damages are a pre-determined amount of money that one party agrees to pay to the other as compensation for specific breaches of the contract, such as failing to complete the project on time. These provisions are used to establish a measure of damages if the contractor fails to meet project deadlines. For enforcement, liquidated damages must reasonably estimate the actual damages the owner might incur from delays and must not act as a penalty.
Scope of work provisions
The scope of work provision is a fundamental part of any construction contract, defining the specific tasks and responsibilities of the contractor. This section details the work to be completed, the materials and labor involved, project milestones, and the quality standards expected. A clear and precise scope of work helps to prevent disputes by providing a baseline against which the project’s progress is measured.
“Time is of the essence” clauses
A “time is of the essence” clause emphasizes that timely completion is an essential element of the contract. In construction contracts, this means that any failure to meet deadlines can be considered a material breach, allowing the nonbreaching party to seek legal remedies, including terminating the contract. It places significant pressure on the contractor to ensure that the project stays on schedule.
Subrogation clauses
Subrogation clauses are often included in construction contracts regarding insurance. These clauses allow an insurer to step into the shoes of the party it has compensated and seek recovery from the party responsible for the loss. In a construction setting, this could affect how risks are transferred and claims are handled, particularly in cases of property damage or personal injury where multiple parties might be liable.
Choice of law or forum
The choice of law clause identifies the jurisdiction’s laws that will be used for the interpretation and enforcement of the contract. This is particularly important in construction as laws can vary significantly between different regions. Similarly, the choice of forum clause determines the location where any disputes related to the contract must be litigated. These provisions are crucial for reducing uncertainties related to legal disputes and ensuring that any legal proceedings are conducted in a predictable manner.
Understanding these key provisions in construction contracts can significantly affect risk management and project execution. Our attorneys can help tailor these clauses to your specific circumstances and ensure your interests are well-protected.
Learn More About What Our Legal Team Can Do For You
Please contact us at 816-708-2218 to arrange a consultation with our experienced construction attorneys. We serve clients throughout the region, and our lawyers are licensed to practice law in Kansas, Missouri, Oklahoma and Colorado.