Construction Contract Negotiation & Drafting: A Practical Checklist (And Where State-Specific Issues Can Surprise You)

Construction contract negotiation is often treated as a "forms exercise," especially when the parties start from familiar templates (e.g., AIA forms). In practice, though, the biggest problems tend to arise not from the existence of a form, but from (i) misalignment among the project's governing documents and participants, (ii) ambiguity in pricing and payment mechanics, and (iii) state-specific statutory requirements that override negotiated terms.

This article includes a practical checklist intended to help owners, developers, and contractors streamline contract negotiations, reduce downstream disputes, and avoid unpleasant surprises during payment administration.

1. Start by identifying "other agreements" that drive contract terms