Residential Construction Contracts—10 Issues to Consider

From time to time our private clients embark on substantial construction projects involving the renovation or ground up construction of residential homes and related amenities. Often these projects involve many millions of dollars. It makes sense then that the construction contracts relating to these projects be carefully reviewed by competent legal counsel. The following is a list of 10 issues to consider when entering into a residential construction contract:

Use of Forms. Many general contractors use their own form of construction contract. In our experience, these forms are generally inadequate. They are often one-sided and—equally significant—poorly written, usually due to modifications made over many years of use. Some general contractors use, or at least are familiar with, the forms of contract generated by the American Institute of Architects. In our experience these forms are much preferable to a general contractor’s form. We often suggest that a client use