What has caused these changes to industry standard contract clauses? Allocation of risk often gets modified in contract clauses based on Project Owner’s or their lawyer’s past experiences. The issue with modifications to contract clauses is the lack of understanding of what the clause means and its associated risks to Project Owners, Consultants, Contractors and other Stakeholders.
If the risk materializes:
- disputes arise,
- relationships are damaged,
- project costs can increase,
- schedules can be compromised,
- bidders can jeopardize their businesses and
- the potential for litigation increases.
It starts with reading and understanding the General Requirements, General Conditions and associated Supplementary Conditions in the contract. By exploring some Supplementary Conditions, you will hear from the perspectives of the Project Owner, Consultant and Contractor on why each clause exists and best practice recommendations on how to address the clause. But why does understanding supplementaries matter? Because without awareness, you cannot mitigate or manage the impacts of the clauses!
Obtain this training BEFORE your next project or your next CONTRACTUAL DISPUTE. Remember when it comes to contracts, it’s not about your own thoughts and assumptions; it’s about what is “written”!