How do you comply with construction contract terms?

1 Read and understand the contract

Before you sign or start any work, you should read and understand the contract thoroughly. Make sure you know the type and form of the contract, the scope of work, the payment terms, the change order procedures, the dispute resolution mechanisms, and the risk allocation. If you have any questions or concerns, seek clarification or advice from a legal or contractual expert. Do not assume anything or rely on verbal agreements.

2 Communicate and document effectively

Communication is key to complying with construction contract terms. You should communicate regularly and clearly with the owner, the contractor, the subcontractors, and any other stakeholders involved in the project. You should also document everything related to the contract, such as progress reports, change orders, invoices, receipts, correspondence, inspections, tests, and claims. Keep a well-organized and updated record of all the contract documents and evidence. This will help you avoid misunderstandings, monitor performance, and support your position in case of disputes.

3 Manage changes and variations

Changes and variations are inevitable in construction projects. They can arise from design errors, site conditions, client requests, regulatory requirements, or other factors. However, changes and variations can also affect the contract terms, such as the scope, cost, and time of the work. Therefore, you should manage changes and variations carefully and follow the contract procedures for requesting, approving, and implementing them. You should also evaluate the impact of changes and variations on the contract terms and negotiate any adjustments or compensations accordingly.

4 Monitor and control quality and safety

Quality and safety are two of the most important aspects of complying with construction contract terms. Quality refers to the degree to which the work meets the contract specifications and standards. Safety refers to the prevention of accidents, injuries, and damages to people, property, and the environment. You should monitor and control quality and safety throughout the project by implementing quality assurance and quality control measures, conducting regular inspections and tests, enforcing safety rules and regulations, and correcting any defects or hazards.

5 Resolve disputes promptly and professionally

Disputes can arise from various sources, such as errors, omissions, delays, defects, claims, or breaches of contract. Disputes can also affect the contract terms, such as the cost, time, and quality of the work. Therefore, you should resolve disputes promptly and professionally by following the contract mechanisms for dispute resolution, such as negotiation, mediation, arbitration, or litigation. You should also maintain a cooperative and respectful attitude towards the other party, avoid escalating the conflict, and seek legal or contractual advice if needed.

6 Learn and improve continuously

Complying with construction contract terms is not only a matter of fulfilling your obligations, but also a matter of learning and improving your skills and knowledge. You should review and evaluate your performance and outcomes at the end of the project or at regular intervals. You should also identify and analyze any issues, challenges, or lessons learned from the contract process. You should then apply your findings and feedback to improve your future contracts and projects.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?