Understanding and Negotiating Construction Contracts

Objectives
Learn how to protect the assets of your company by mitigating or eliminating commercial risk through negotiation of a contract’s terms and conditions.

Approach
A two day practical course on understanding and negotiating the commercial terms and conditions typically found in construction and construction-related contracts. For small to large companies which are continually faced with one-sided, risky and unfair commercial terms and conditions for their construction opportunities. This course is designed to significantly raise the awareness of the commercial risks involved with contracts. It is also designed to improve the contracting skills of employees who have the responsibility for negotiating the commercial terms and conditions of their company’s contracts.

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Who should attend?
Contractors & Subcontractors, Material Suppliers for construction projects, Procurement Managers, Risk and Insurance Managers, Owners and Facility Managers, Corporate executives interested in managing commercial risk exposure assumed in a contract.

Course Outline
  • Myths and paradigms of contracts.
  • Order of Precedence - is this important?
  • Scope of Work - the first and most important foundation stone of a contact.
  • Terms of Payment - the second contract foundation stone.
  • Schedule - the third contract foundation stone.
  • Indemnities - very dangerous risk transfer agreements.
  • Anti-indemnity legislation - good? Or not so good?
  • Insurance - common construction related insurance types and terms.
  • Additional Insured Status - free insurance for your client.
  • Why do clients love CLAIMS?
  • Waiver of Subrogation - get out of jail free card for clients.
  • Changes/Differing Conditions - get time and money.
  • Damages -actual/liquidated/consequential, ways to eliminate/limit.
  • Dispute Resolution - never go to arbitration or to court.
  • Force Majeure - Important? Something to think about.
  • Assurances of Performance - on-demand bonds and surety bonds.
  • Warranty - not a guaranty and not a free maintenance agreement.
  • Termination and Suspension - limit your exposure.
  • Independent Contractor - understand the value of this designation.
  • Advance and Final Waivers - be careful!!
  • Assignment - Rights and Obligations, who benefits or losses.
  • Venue and Applicable Law - One state better/worse than another?
  • Negotiating Issues - negotiate for success and asset protection.

Materials Provided
  • Understanding & Negotiating Construction Contracts book
  • Seminar Workbook