Important Clauses In Construction Contracts – Part 2

In our last post on construction contracts, we discussed a number of considerations including: Scope of Work, Limitation of Liability Indemnities, Payment Terms and Certainty of Terms.

Since that post, COVID-19 impacted the construction industry and we wrote a specific post regarding "Important clauses in Construction Contracts in light of COVID".

These are important clauses and considerations for any construction contract; however, there are a number of other provisions that should be addressed. In this post, we will examine three provisions: Warranty Obligation, Change Mechanisms and Termination for Convenience:

1. Warranty Obligation:
2. When considering a warranty obligation, it is important that the warranty not be too broad, or too narrow. For example, a warranty against any defects in design, engineering, materials, construction and workmanship would be inappropriate in circumstances where the contractor was not involved in any design or engineering. The