Key Takeaways
- Broad-form indemnification, no-damage-for-delay clauses, and pay-if-paid provisions are the highest-risk contract terms.
- When unfavorable terms cannot be negotiated out, price the risk into the bid at 2-5% for significant provisions.
- Construction attorney contract review ($1,000-$3,000) is cost-effective for any project over $250,000.
- A contract compliance log tracking each obligation and deadline is both an operational tool and a claims documentation foundation.
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Test Your Knowledge
1.What is the most significant contract risk for a construction firm?
2.What should a contractor do when presented with unfavorable contract terms?
3.What is the purpose of a flow-down clause in subcontractor agreements?