Strategies for Contractors to Mitigate Risks and Identify Opportunities in a Construction Contract:
- Review Scope of Work: Ensure the contract documents clearly outline existing and special site conditions, material specifications, and the intended sequence of work.
- Verify Estimates and Quantities: Confirm that the contract line items, and their corresponding quantities accurately reflect the cost proposal provided.
- Clarify Payment Terms: Understand the payment schedules, amounts, and conditions to ensure timely cash flow throughout the project.
- Assess Timelines: Ensure the master or baseline project schedule aligns with the agreed start and completion dates. Familiarize yourself with the change order procedures.
- Evaluate Performance Provisions: Understand the contractual provisions for incentives, disincentives, penalties, and liquidated damages to manage performance expectations effectively.
- Review Termination Clauses: Be aware of the conditions under which any party can terminate the contract to prepare for potential changes in the project scope.