6 Contract Clauses Often Overlooked in Construction Agreement Reviews

Construction contracts are often lengthy, leading reviewers to focus on price and schedule figures while overlooking procedural clauses that ultimately determine dispute outcomes. Before signing, verify the following six critical nodes: 1. **Time Extension Claims**: Most standard templates require contractors to submit a written report within a specified period after an event occurs. Failure to comply may forfeit rights. Ensure the deadline is enforceable and clearly define the recipient and delivery method for submissions. 2. **Change Order & Visa Authorization**: Verifications signed by unauthorized personnel can be rejected during settlement. Explicitly define the scope of authority for the Employer’s Representative and Supervision Engineer in the contract, and specify the format and retention requirements for visa documents. 3. **Price Adjustment Triggers**: Clearly outline mechanisms for adjusting prices due to material fluctuations, policy changes, or quantity variances exceeding agreed thresholds. Specify calculation bases and fee standards to prevent conflicting interpretations at settlement. 4. **Settlement Documentation & Review Timeline**: List all required settlement documents as a contract appendix. Define the review period for the Employer upon receipt and establish consequences for delays. 5. **Dispute Resolution & Jurisdiction**: Arbitration and litigation cannot be stipulated simultaneously. The choice of jurisdiction significantly impacts future costs and timelines. 6. **Symmetry of Liability**: Assess whether penalty rates for payment delays and construction delays are balanced. Check for unilateral exemption clauses; this symmetry is a key indicator of fair risk allocation. These points represent general best practices. Specific projects must be evaluated based on tender documents, special conditions, and performance records.