Construction Contract Signed – What Next For An Owner?

Introduction

Driving a construction contract to signature can sometimes feel like reaching the finishing line of a very long, uphill race. The tender process for the contract may have included a pre-qualification stage or a multi-tiered tender review, protracted dialogue with one or more tenderers to reach a preferred bidders stage, and then a lengthy negotiation to finalise the contract-drafting.

Owners might be forgiven for preferring to take a hands-off approach to their construction contract, simply stepping away until such time as they need to take over the project for operational purposes.

Unfortunately this approach can land an owner in hot water. He may risk, by his own actions or inactions, decreasing (or even eradicating) any rights of claim he may have under his construction contract or, worse, trigger claims from his contractor. It really is crucial for owners to read their contract, understand their obligations, and comply with them in every respect.