The best way to avoid any construction contract dispute is to cover every contingency
in the contract. What's not easy is anticipating all likely disputes. To reduce
your risk of a dispute, avoid signing a construction contract with any of the following
clauses.
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Key Options in CCW that Tilt the Agreement in Favor of the Property Owner |
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Navigator Topic |
Question |
Selection |
|
Scope of Work – General |
Which form of the scope of work clause? |
Broad form. |
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Disclaimer by Owner |
What are the conditions at the job site? |
Owner disclaims conclusion of contractor. |
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Employee Relations |
What's in the contract on employee relations? |
Owner can discharge employees for cause. |
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Responsibility for Safety |
Who's responsible for safety on the job? |
Owner is not responsible for job site safety. |
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Authority of Representative |
What tasks can the representative handle? |
Representative can reject any work. |
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Authority of Representative |
What tasks can the representative handle? |
Representative interprets the plans & specs. |
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Subcontracted Work |
What's in the contract on approval of subs? |
Owner may reject any subcontractor. |
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Differing Site Conditions |
What's in the contract on differing conditions? |
No change order for differing site conditions.
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Qualifications – Site Conditions |
What's in the contract on differing conditions? |
No pay for abandoned work. |
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Release of Claims by Contractor |
What's in the contract on release of claims? |
Final payment releases all contractor claims. |
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Retainage Basics |
Will retainage be deducted from payments? |
Yes |
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Grounds for Withholding Payment |
Which are valid reasons to withhold payment? |
Failure to keep the work on schedule. |
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Changes in the Work |
Do changes require mutual agreement? |
Owner can require changes. |
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Options When Pricing Changes |
What's in the contract about pricing changes? |
Owner can pay the estimated cost. |
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Right to Payment for Extra Work |
Does the right to a change order expire? |
Contractor must assert the right to extra pay. |
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Defective Work |
What standard is used to evaluate the work?
|
Any unsatisfactory work can be rejected. |
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Warranty |
What's the warranty on labor and materials? |
Broad form warranty. |
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Notice of Claim |
What's in the contract about notices of claim? |
Notice is required within 5 days of discovery. |
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Liability for Damage – Owner Bias |
What's in the contract about liability for loss? |
Contractor is liable for all damages. |
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Indemnity |
Will contractor reimburse owner for losses? |
Yes |
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Payment for Inspections |
Who's responsible for passing inspections? |
Contractor bears the cost of corrections.
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Let Let Pennsylvania Construction Contract Writer reduce the risk of a construction
contract dispute on your jobs.