Checklist for Construction Contracts

25 November 2021

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4 min read

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We have set out below a simple checklist that you can use when negotiating a construction contract to ensure that you have considered and discussed the important legal issues prior to entering into the contract. Below the checklist, we also set out three key things to keep in mind during the project work, and two key things to be on top of following the completion of the works. - Sep 10, 2021

Before You Sign the Contract

During the Project

Changes/Variations to the Contract
Ensure that any variations or changes to the scope of works during the life cycle of the project are made in writing and follow the mechanisms agreed in the contract. Think about getting independent advice as to the price and basis for any material variations and, where possible, get an agreement on these before implementing the change/variation.

Payment Terms
If the contract allows for payments to be made during the project, make sure you are on top of (1) the frequency payments are due, (2) for how much (be mindful that the amount may change subject to variations), (3) the amount being paid/charged is correct (is there sufficient evidence of additional costs charged?), (4) the process to be followed if the amount charged is challenged.

Disputes
Disputes often arise in construction and it is vital the contract includes a quick and efficient dispute resolution process that can assist if you have a disagreement during the construction phase of the project.  If you are unsure how best to approach a dispute, contact the team at Axis Construction Law for further advice or refer to our blogs on our website for further information.

Completion of the Project

Defects Liability Period
Familiarise yourself with when and how long the defects liability period runs for after completion of the project and that you are happy with the timeframe proposed. Make sure you know the size of any retentions to be held back during the defects liability period and when they are to be paid. Think about instructing an independent construction expert to review the work during the defects liability period to confirm it is up to standard and free of defects.

Disputes
Refer back to the dispute resolution clauses in the contract and try to deal with the dispute effectively and efficiently via the contractual dispute resolution clauses. If you are unsure how best to approach a dispute, contact the team at Axis Construction Law for further advice or refer to our blogs on our website for further information.

*Disclaimer – this article is an overview of the topics discussed and is not to be taken as legal advice. We recommend speaking to a legal professional before undertaking any activity relating to matters discussed in this article.