General Construction Contract Check List
Below please find a quick reference check list that can be utilized to begin analyzing construction contract issues. The check list is by no means comprehensive, but it can provide a good starting point for business and legal analysis. The check list is no substitute for legal advice in any particular situation, but may help you with focusing on general contract issues in the future. Some of the issues which are dealt with on a routine basis with regard to construction, road building and utilities
1. Definitions in the Contract Documents;
2. Project Timetable;
3. Conditions for Offer, Acceptance or Rejection of the Contract;
4. Forfeiture of Offer Bond or Other Bid Securities;
5. Execution of the Written Contract Documents;
6. Tender of Performance Bonds, Insurance and Certifications;
7. Qualification of Vendors, Sub-Contractors and Suppliers;
8. Rejection by Owner, Architect, Engineer or General Contractor;
9. Insurance: Contractors= and Owners= Liability Insurance; Sub-Contractors= Insurance; Property Insurance; Workers’ Compensation; Environmental Insurance; Comprehensive General Liability Insurance;
10. Owners= Responsibility to Furnish Data in Respect to Title, Property Rights, Land Surveys, Easements and Reference Points;
11. General Contractors= Responsibilities: Supervision; Furnishing of Labor, Materials and Equipment; Employment of and Responsibility for Sub-Contractors; Payment of Taxes, Patent Fees, Royalties, License and Permit Fees, and Other Governmental Charges; Compliance with Applicable Laws, Ordinances, Rules and Regulations; and Safety;
12. Architect and Engineers= Responsibilities: Owner; Inspection; Defective Work; Disputes;
13. Changes in Work including Written Change Orders; Field Orders; Unauthorized Additional Work;
14. Adjustments of Contract including Price and Timing;
15. Contractor Warranty and Guarantee;
16. Test and Inspections of Work;
17. Determination of Work by Owner;
18. Right to Stop Work;
19. Correction or Removal of Defective Work;
20. Acceptance of Defective Work and Adjustment of Contract;
21. Payments: Applications; Approval; Partial Utilization by Owner; Final Inspection;
22. Application for Final Payment;
23. Suspension or Termination of Work by Contractor;
24. Arbitration;
25. Manner and Place for Giving Notices; and
26. Interest.
Along with this checklist, there also are certain issues which may arise regarding performance bonds. Those issues can include the following:
1. Identification of Parties, Agents and Capacity;
2. Capacity and Power of Parties;
3. Monetary Bond Amount;
4. Incorporation into Construction Contract;
5. Conditions Precedent for Consideration;
6. Bond Conditions;
7. Scope of Obligations on Bond;
8. Conditions Precedent to Bond Liability;
9. Limitations on Actions Against Bond;
10. Rights on Default;
11. Statement of Bond Premium;
12. Dates and Time is of the Essence; and
13. Authority for Attesting the Signature.
Again, this is merely a starting point for a more comprehensive and substantial review of the business, economic and legal issues which may affect your business. We provide this to you simply as a starting point for more detailed analysis of any issue that should arise in the future.
by : Ron C. Newcomb