There are six questions that an owner can ask to evaluate what rights and obligations it will have upon entering into a construction contract, writes Daniel Bradfield, a partner in Arnall Golden Gregory LLP.
“Quite often owners simply verify the economic terms for the project, set a completion date, possibly include references to drawings or plans, and then sign a construction contract with little regard to the various provisions that will impact the amount of leverage available in the event a problem occurs with the project,” Bradfield writes in the article.
He discusses the six questions:
- What is being signed?
- What actions can an owner take if the contractor does not finish the work on time?
- What does the contractor need to provide the owner in order to receive payment?
- How are disputes to be resolved?
- What does the owner owe the contractor if the owner terminates the construction contract?
- What, if any, roles will the architect play in the project under the terms of the construction contract?