Plain-English Construction Contract Analysis

What a good one includes

• A clear breakdown of payment milestones, retainage percentages, and the exact process for submitting and approving pay applications.
• A step-by-step summary of how change orders must be requested, documented, and approved to ensure you get paid for extra work.
• A timeline of critical project milestones, substantial completion dates, and any liquidated damages penalties for running behind schedule.
• An explanation of the indemnity clauses and liability limits, highlighting who is responsible if someone gets hurt or property is damaged.
• A roadmap of the required steps for resolving conflicts, including mandatory notice periods, mediation, or binding arbitration requirements.
• A plain-language guide on how either party can terminate the contract, including termination-for-convenience risks and your rights to payment if stopped early.

Common mistakes to avoid

• Relying on verbal agreements to override the written terms, as courts will almost always enforce the signed contract over spoken promises.
• Failing to notice strict notice windows for delay claims, which can completely strip your right to extra time or money if you miss them by even twenty-four hours.
• Accepting pay-if-paid or pay-when-paid clauses without realizing they shift the entire risk of owner nonpayment directly onto your shoulders.
• Overlooking the exact definition of substantial completion, which triggers crucial warranty periods and the release of withheld retainage.

Frequently asked questions