Contractual Arrangements For Construction

The primary concern in dealing with contractual arrangements for construction is getting the work completed satisfactorily, in the shortest time, and for the least expense for the owner--while assuring that all other parties associated with the contract make a reasonable profit for their effort. In our complex construction climate of today, achieving all of these is usually not possible. Somewhere between the beginning of design and the completion of the work, disagreements and delays arise which can destroy the best of intentions. Assuming that all parties associated with the contract are acting honorably and professionally, the disagreements generally arise through inappropriate contract types or through flawed contract documents. These flaws can be either sins of omission or commission, but we must find a way to lessen, if not completely eliminate, their impact. Disagreements and delays are directly related to the extra cost which the owner and the other involved parties must suffer. Usually the attorneys are the only ones who come out on the positive side. Inappropriate or defective contract documents can be the result of inadequate time for preparation and review, laziness in not searching out the proper terms and language, insufficient recognition of the proper assignment of risks, or just ignorance as to what is right and what is wrong for the particular project. They can also result from a client, particularly a public agency, providing rigid general conditions and format requirements with which the engineer is not allowed to tamper. Arguments