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Tips for an Airtight Construction Contract: Negotiating and Drafting
It is important to have a proper construction contract to defend against future disputes and litigation.
September 21, 2011 /Law and Legal PR News/ -- Tips for an Airtight Construction Contract: Negotiating and Drafting
The importance of negotiating and drafting a construction contract that is fully understood by all parties cannot be overstated. The parties often do not understand their duties or realize the other party's expectations in an agreement. Frequently conditions arise that were not anticipated by the parties. These problems can lead to dissatisfaction or animosity, might inhibit future business transactions, and may lead to litigation or arbitration of issues that could have been avoided by more careful analysis and drafting.
This problem, however, can be avoided by following basic contracting principles. These principles begin at the negotiation phase and continue until performance is completed.
Negotiation Basics
Each negotiation brings with it new challenges, new styles and new obstacles to overcome. However, certain practices are essential for any successful construction contract negotiation:
-Prepare: Make a list of objectives, understand the purpose of the negotiations, and anticipate objections from the other side
-Have an Agenda: Use time efficiently and return to the agenda should the discussions run astray
-Prioritize: Know which aspects of a deal you are willing to compromise on, as well as which are considered top priority
-Anticipate: Try and anticipate what could go wrong and how much that would delay the job and how much it would cost
-Communicate: Clearly state thoughts or objectives, and remember to clarify any points of confusion before advancing the discussion
-Confirm: Confirm all terms and write them down to memorialize the agreement
Drafting Contract Provisions
In legal proceedings, the judge or arbitrator tries to ascertain the actual intent of the contracting parties by looking at the written agreement. However, problems arise when the terms are ambiguous, indefinite or otherwise confusing. Therefore, clear, concise language is essential to avoid potential contract disputes.
Much like negotiation, contract drafting is more complicated than many believe. There is a well known habit for contractors to pull out old contracts and piece together a new contract without running it by counsel. That habit has greatly enriched the legal profession. The cost of reviewing a contract is much less than the cost of litigating the mess caused by technical problems created by laypeople when they draft a contract. If you are a contractor who pieces together your own contracts, the legal professional thanks you.
Proper preparation, communication and the help of a knowledgeable attorney can prevent contract disputes from arising. Anyone who needs help resolving a construction contract dispute should seek assistance from an experienced construction law attorney to discuss their options.
Article provided by Robert N. Levin, PC
Visit us at www.robertnlevin.com/
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