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Topics to address when negotiating a construction contract

There may be a variety of steps involved with initiating operations on a new construction project. Before the process can begin, construction company owners in California may first need to enter negotiations with the project owner and bid on construction contract. This contract may prove vital to protecting the interests of all parties involved and there may be a variety of crucial topics to address during such negotiations.

Not only can construction contracts work to set clear terms on vital components of a project, but such documents could also provide insight on how to resolve any issues that arise. Some topics to address when negotiating a construction contract could include:

  • Know the requirements: Taking the time to understand every aspect of the project and any requirements set by the project owner prior to entering negotiations could prove vital in various ways.
  • The financial side: Reviewing project details thoroughly could be essential to setting realistic estimates for the costs involved and to setting provisions for possible unknown variables.
  • Address dispute resolution:  Addressing terms on options for dispute resolution could also help limit stress and provide structure to a construction contract.
  • Establish lines of communication: In construction projects, communication may also be vital to cultivating a healthy relationship and in addressing and resolving any unexpected issues that might arise.

As there may also be other construction companies vying to participate in a new project, it may also be helpful to provide project owners with information of previous experience and success on other related projects.

With a variety of topics to address, preparing to negotiate a construction contract can be somewhat intimidating at times. Individuals in California who wish to gain insight in covering every essential element of such a process could find it helpful to retain the services of an experienced attorney for guidance in navigating the process. An attorney can work with a client in preparing a strategy for negotiations and in seeking acceptable contract terms suited to safeguard the interests of his or her company.