HOW OWNERS AND CONTRACTORS DO BATTLE OVER KEY CONTRACT ISSUES:
MAJOR CONCERNS FOR THE CONTRACTOR

1. INTRODUCTION
2. SCOPE OF WORK
1. Studying and Comparing the Contract Documents
2. Design Delegation
3. Job Site Safety
4. Shop Drawing Revisions
5. Avoiding "Moving Target" Scopes
3. TIME OF PERFORMANCE
1. Scheduling
2. Force Majeure
3. Obtaining Extra Time for Extra Work
4. PAYMENT
5. RISKS, INDEMNIFICATION AND LIMITATION OF LIABILITY CLAUSES
1. Risks
2. Indemnification
3. Limitation of Liability
6. CONCLUSION

Abstract

This paper examines key clauses in the construction contract from the contractor's perspective, with suggestions on language helpful to contractors when negotiating with the owner of a project. It also cautions the contractor on some language to avoid. The most widely used forms in commercial construction are AIA Document A-101 (payment by stipulated sum) or A-111 (payment by cost of work plus a fee). Both incorporate the AIA Document A-201, General Conditions of the Contract for Construction. Due to the broad use of this document, many of the contract clauses and suggestions in this paper are based on A-201; however, the suggestions could be applicable to any general contract.

This paper only covers examples of major clauses of importance to contractors, and is not intended to be exhaustive. The AIA forms, as other "standard" forms and owner prepared forms, present a virtual minefield of risks and liabilities to be negotiated or, at least, understood and priced.

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