Key Clauses In Construction Contracts: Practical Guidance For Project Success

As the legal and commercial landscape around construction projects continues to evolve, so must the contracts that govern these projects. In recent years, courts and contracting parties have emphasized how agreements allocate risk and define procedural obligations.

Careful drafting and informed negotiation of the following five areas can reduce the risk of contract disputes in construction agreements.

1. Force Majeure and Supervening Events Clauses. The pandemic exposed the limits of force majeure provisions, particularly where contracts failed to explicitly reference terms like "pandemic" or "government intervention". Similarly, force majeure clauses are often improperly used to address supervening events. Separate supervening events clauses should be used to address lower-impact, higher-probability occurrences, such as severe weather or supply chain delays. Clear definitions and detailed evaluation of risk in both types of clauses remain essential.