{"id":1009,"date":"2012-11-29T08:30:29","date_gmt":"2012-11-29T15:30:29","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1009"},"modified":"2012-11-27T08:31:06","modified_gmt":"2012-11-27T15:31:06","slug":"top-five-general-tips-for-all-construction-contracts","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/top-five-general-tips-for-all-construction-contracts\/","title":{"rendered":"Top Five General Tips for All Construction Contracts"},"content":{"rendered":"<p>Spencer Wiegard &#8211; November 9, 2012<\/p>\n<p>Over the past few days, I have found myself wading through the terms and conditions of a lengthy and complicated construction contract, while at the same time considering what topic I should write about. As I slogged through the legalese, I was reminded of a presentation that I gave earlier this year to the Roanoke District of the Virginia Associated General Contractors. The district\u2019s executive committee asked me to speak to its members concerning the broad topic of \u201cConstruction Contracts 101.\u201d\u00a0 At the beginning of my presentation, I passed along my top five general tips for all construction contracts. Although some of these tips may sound like common sense, I often encounter situations where these basic rules are violated by experienced contractors, subcontractors, suppliers and design professionals.\u00a0 My top five general tips for all construction contracts are:<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reduce the terms of the agreement to writing.<\/p>\n<p>a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The written agreement should include all important and relevant information and terms.\u00a0 If it was important enough to discuss prior to signing the contract, it is important enough to include in the written contract;<\/p>\n<p>b.\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 At a minimum, include who, what, when, where, how, and how much;<\/p>\n<p>c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Both parties should sign the written agreement; and<\/p>\n<p>d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Don\u2019t ignore handwritten changes to the contract, as these changes may either mean that you don\u2019t have a deal, or they may become part of the contract when you sign it.<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Read the contract.<\/p>\n<p>a.\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 Carefully read the whole contract;<\/p>\n<p>b. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Read all of the \u201ccontract documents,\u201d including all attachments and addenda;<\/p>\n<p>c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Be careful of \u201cflow-down\u201d or \u201cpass-through\u201d provisions in subcontracts;<\/p>\n<p>i.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If the subcontract incorporates the prime contract documents, get them all and carefully review them;<\/p>\n<p>ii.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A \u201cflow-down\u201d or \u201cpass through\u201d clause provides that the subcontractor assumes toward the general contractor all of the duties and obligations that the general contractor has assumed to the owner in the prime contract;<\/p>\n<p>iii.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A \u201cflow-down\u201d or \u201cpass through\u201d clause also provides that the terms and conditions of the prime contract are incorporated by reference into the subcontract and become a part of the subcontract.<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Use the correct party names.<\/p>\n<p>a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If a party is a corporation, LLC, partnership, etc., use the correct full legal name of the entity;<\/p>\n<p>b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Make sure the endorsements include a statement of in what capacity a person endorses the agreement on behalf of an entity; and<\/p>\n<p>c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If the contracting entity is a sole proprietor, describe him or her as \u201cthe person\u2019s name, d\/b\/a the trade name.\u201d<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Note any documents or information that you must provide to the other party and note all notice periods and deadlines.<\/p>\n<p>a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Make two separate lists of these requirements, and keep the lists in a conspicuous place where project managers, officers, and\/or management can quickly access this information; and<\/p>\n<p>b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Frequently refer to these lists to ensure that you comply with all of these requirements.<\/p>\n<p>5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Don\u2019t assume that you are stuck with the language of the contract form.<\/p>\n<p>a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Even if you have little bargaining power, you may be able to negotiate changes to the most taxing or arduous clauses; and<\/p>\n<p>b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Consider what amount of risk you are comfortable taking on before you agree to an onerous term.<\/p>\n<p>If you have any questions or concerns about the language in a proposed contract, call a knowledgeable construction lawyer.\u00a0 Consider asking your lawyer to review any proposed construction contract, especially those for large, \u201cbusiness killer\u201d projects.<\/p>\n<p>via <a href=\"http:\/\/constructionlawva.com\/five-general-tips-for-all-construction-contracts\/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+ConstructionLawMusings-RichmondVa+(Construction+Law+Musings-+Richmond%2C+VA)\">Top Five General Tips for All Construction Contracts | Construction Law Musings- Richmond, VA<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spencer Wiegard &#8211; November 9, 2012 Over the past few days, I have found myself wading through the terms and conditions of a lengthy and complicated construction contract, while at the same time considering what topic I should write about. As I slogged through the legalese, I was reminded of a presentation that I gave&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/top-five-general-tips-for-all-construction-contracts\/\">Continue reading <span class=\"screen-reader-text\">Top Five General Tips for All Construction Contracts<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[72],"class_list":["post-1009","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-construction-contracts-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top Five General Tips for All Construction Contracts - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/top-five-general-tips-for-all-construction-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top Five General Tips for All Construction Contracts - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Spencer Wiegard &#8211; November 9, 2012 Over the past few days, I have found myself wading through the terms and conditions of a lengthy and complicated construction contract, while at the same time considering what topic I should write about. 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