WebCredenza 2024 Construction contracts: Drafting issues, spotting red flags and allocating risk, part 1

Construction contracts are among the most difficult agreements to draft or review and negotiate.  At every stage, building is fraught with substantial risk – timely regulatory approvals, cost containment and price certainty, financing contingencies, building deadlines, and a host of other risks. If these risks materialize, as is common, the bargained for exchange among the parties and their expectations are radically unsettled. Construction contracts are a careful allocation of risks, a compromise between flexibility and price/cost certainty, and establish procedures for resolving disputes short of costly litigation. This program will provide you with a practical guide to drafting the most important provisions of construction contracts.

Part 1:

• Reviewing and drafting essential provisions of construction contracts.
• Use and common mistakes in using AIA contacts in negotiations with builders.
• Defining the scope of a project and planning for modifications.
• How fees and costs are structured – and allocating risk of modification.
• Tying performance standards and timelines to payments.

Part 2:

• Insurance and indemnification provisions of construction contracts.
• Role of subcontractors and mechanics and materialmen liens.
• Anticipating disputes between property owners and builders, and building in cost-effective dispute resolution.
• Role and limitations of different type of damages.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.