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Look for red flags in construction contracts to avoid litigation

On Behalf of | Oct 29, 2022 | Construction Law |

The prospect of litigation over an alleged breach of contract is a nightmare scenario for contractors and construction companies. A lawsuit targeting your business will likely lead to lost earnings and countless other costly issues.

You probably spent a lot of time drafting your contracts or reviewing those provided by other parties. But, without a background in construction law, they may still expose you to breach of contract risks.

Common problems in construction contracts

As a contractor, you know that no two projects are alike. The details differ from build to build. The agreements you encounter in your contracting company should always be created for each individual project. One of the most harmful errors you might make is signing boilerplate or cookie-cutter project agreements. Instead, make sure your projects come with unique contracts.

Two more red flags to watch out for:

Generalized terms. It is usually unwise to sign contracts containing unnecessary language or terminology. At the same time, you should make certain they include well-defined and specific terms. If you have questions or concerns, work with the other parties to iron them out before signing the document.

Lack of change provisions. Project adjustments are nearly always unavoidable in large and small-scale construction projects. Contracts function best and protect all parties when they contain details about how these changes will happen. Consider requesting revisions whenever the agreements that come your way do not provide project change instructions.

Whether you are facing a breach of contract accusation or suffered losses through another party’s breach, information about Texas construction law can help.


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