Home Blog Construction Contract Review

Construction Contract Review

This page explains what a construction contract review includes, what lawyers look for, and how much it typically costs based on real ContractsCounsel pricing data.

Jump to Section

Quick Facts — Construction Contract Lawyers

What Is a Construction Contract Review?

Construction contract review is when a lawyer reviews a construction contract on behalf of their client. The construction lawyer will read, identify, and analyze the key terms of the contract to make sure they are fair for their client. Construction lawyers have specialized experience in the construction industry, so they understand reasonable terms.

As part of the service, a construction lawyer will typically provide redlines and engage in contract negotiation on behalf of their client to best protect their interests. The lawyer’s job is to minimize the risk for their client as much as possible and get the most favorable terms in place, while ensuring that the contract is enforceable in their client’s favor and that it complies with relevant laws and regulations.

See Construction Agreement Pricing by State

What Should a Construction Contract Include?

Here are some of the essential elements that you should include in a construction contract:

  • Names of homeowners and contractor
  • Complete contact information of homeowners and contractor
  • List of attachments such as blueprints, documents, deals, etc.
  • Stipulation for permits, licenses, and insurance
  • Cost of project
  • Change orders
  • Detail of construction work
  • Date of completion
  • In case of non-payment from homeowners, how to terminate the contract
  • Remedies in case of a breach in the contract
  • Exclusive rights to withhold payments if a situation arises
  • Rights to access the property
  • Rights to inspect the property
  • Lien waivers
  • Warranties
  • Amount of damages
  • Remedies in case of unforeseen events such as acts of God
  • Details of material disposal post-construction
  • An agreement, signature with date of homeowners and contractor

There can be many other clauses depending on the nature of the work. Make sure to consult with an attorney to make sure that your contract contains the right terms for your needs.

Here is an article about how to make a contract.

Terms You Should Look for When Reviewing a Construction Contract

There are several important terms to look for when reviewing a construction contract. A few are detailed below.

Pay-when-paid

There are two terms in the contract – pay-when-paid or pay-if-paid. These can become huge problems and the main reason for delayed payments.

Pay-when-paid refers to the claim that payment will be cleared when the owners have paid to the subcontractors. Usually, the process states that payments release seven days after receiving payment from the owners.

Since these deadlines for payments are subjected to federal or state laws, it is vital to learn about the systems before applying for the project.

Pay-if-paid is a method of dependency created between the owner, who is liable to pay the contractor, followed by the subcontractor. Uniquely, it shifts the responsibility from the contractor to the sub-contractor for non-payment.

When you see pay-if-paid in the contract, ask for it to be replaced. If the contractor is not removing it, work with caution.

No Damage for Delay

When you see this clause, tread with care. If an upper-tier party is a cause for delay, the contractor will not get reimbursement for costs.

For instance, the subcontractor is not eligible to claim for delays caused by the general or main contractor. It causes huge losses for lower-tier contractors.

To be safe from any losses, change it to include reimbursements. In addition, it will keep the general and subcontractors safe if any upstream party causes delays.

Termination for Convenience

It is another tricky spot to watch out for. The term indicates that the contractor will get paid for services performed or installed until the termination date. So if any material purchased intended for installation becomes the liability for the contractor.

On the safe side, add a clause that indicates the payment or reimbursement will be released for material purchased even after termination.

No-lien Clause

It is often found in the contract. This clause requires the contractor to waive their bond claim or lien right before the project starts.

Without knowing what it entails, the other party often agrees to work without any bond claim or lien against the property. Hence it results in non-payment.

Depending on the state, this law can be removed if not enforced. It would be best if you asked to remove this clause that takes away your legal rights.

Subordination of Lien

You will find subordination of lien under the no-lien clause. It relates to the compliance of mechanics lien in lien’s priority. The term determines who gets the payment first when a lien is foreclosed on.

The mechanics of the lien determine your chances of getting paid. So, if you find yourself at the end of the priority line, getting paid is slim despite having a valid lien.

Liquidated Damages

These are kinds of penalties for completing the project post-scheduled time. Again, these are markers for the homeowner to evaluate the losses in a delay period.

Then, the owners assessed the damages and passed them down to the subcontractor, bypassing the general contractor.

If you find liquidated damages in the construction contract, make sure to edit it by making the general contractor liable for the liability.

Meet some lawyers on our platform

Neil B.

6 projects on CC
CC verified
View Profile

Dolan W.

983 projects on CC
CC verified
View Profile

Harry N.

8 projects on CC
CC verified
View Profile

Adam J.

4 projects on CC
CC verified
View Profile

Terms in a Construction Contract Where You Should Proceed with Caution

As you review a construction contract, proceed with caution if you see these terms.

Change Orders

Before you sign, review the construction contract for the section that says ‘change orders.’ When examining the section, look at the following options:

  • Process of submitting changes
  • Deadline and notices for prompting changes
  • Process for filing claims
  • And clauses that will be in the way of making changes

If you find the deadlines are too short, discuss them with your attorney and apply for an extension in deadlines. You would require ample time to piece together the needed backup information.

Flow-down Clauses

These clauses are originally in the prime contract and are carried forward to the subcontractor’s contract. If you find any clause, make sure to request a copy of the prime contract for review.

Do not agree on terms without reviewing them. And since you (subcontractor or general contractor) are planning on signing the flow-down clauses, you have the right to review these before you seal the deal.

Warranties

Usually, the contract has a clause of warranty for materials and services for a year. Otherwise, check the section thoroughly to see if the homeowner or general contractor outlines no hidden warranties.

Because if the warranties go on for five or ten years, it can be a hassle and liability. So make sure to check this section before you sign the construction contract.

Construction Contract Template

Purchase and download templates drafted by lawyers in our network that match your needs.
Lawyer Services Available
100% Lawyer Drafted
Instant Download
Template Construction Consultant Agreement
For construction projects and clients
View More...
*By purchasing a template, you acknowledge that you have read and understood ContractsCounsel's Terms of Use.

Construction Contract Review Checklist

Below is a checklist of items to review in a construction contract and items to be cautious with if seen in a construction contract.

Terms To Review

  • Contract amount
  • Contract description
  • Schedule
  • Scope of work
  • Documents
  • Insurance
  • Responsibilities (owner, general contractor, and subcontractor)

With Caution

  • Change orders
  • Indemnification
  • Dispute resolution
  • Flow-down clause
  • Warranties

Watch out

Here is an article about what a contract is.

Sample Construction Contract Language

Scope of Work Clause

The Work. The Contractor agrees to furnish and pay for all supervision, contract administration, services, labor, materials, equipment, tools, and other costs necessary to perform all requirements of the Contract Documents (as hereinafter defined) for the scope of work described on Exhibit A, a form of which is attached hereto, said Work (hereinafter defined) to performed as part of Owner’s biodiesel production facility located at Grays Harbor, Washington (the “Project”). The Contractor shall perform the Work in a workmanlike manner and in strict accordance with this Agreement. The Contractor shall be solely responsible for all construction means, methods, techniques, sequences, procedures, and safety precautions or programs, and for supervising, coordinating and performing all of the work. The Agreement contains the general terms and conditions which will govern all future specifications and scope intended to be issued to and performed by Contractor with respect to the Project. The parties acknowledge and agree that the Project involves several discrete “phases” of Work, and each phase to be performed by Contractor shall be incorporated into this Agreement by an amendment executed by both Parties. Each amendment shall be consecutively numbered (e.g. Exhibit A1, Exhibit A2, etc) and shall describe and detail: (i) the scope of work to be performed; (ii) the Cost of the Work (as defined in Section 5) and the Contractor’s Fee (as defined in Section 4) for the work to be performed; (iii) any attendant and requisite changes to the Project Schedule, Preliminary Schedule of Values, required completion dates, liquidated damages, or fees; and (iv) any other changes to the Agreement terms and conditions necessitated by the particular phase of work. All work described and incorporated on any Exhibit A hereto shall be collectively referred to as the “Work”.

1.1 The Contractor agrees that Steve Dahl shall serve as the Project Manager of the Contractor for the Work and, in that capacity, he shall be responsible for personally managing and administering the performance of the Contractor’s obligations under this Agreement, subject to his continuing employment by Contractor and the needs, staffing and skill requirements of the specific Project stage). The Project Superintendent of the Contractor for the Project will be mutually agreed upon by the Parties. Provided they remain in the employ of or otherwise affiliated with the Contractor, the persons referenced in this Section shall not be replaced without the prior written approval of the Owner. The Owner shall have the right to approve persons proposed as replacements for the Project Manager and Project Superintendent. The Owner’s approvals under this Section shall not unreasonably be withheld. Furthermore, the Contractor agrees that the primary members of the Contractor’s Project team will be available to perform the Work on throughout its duration.

1.2 The Contractor agrees that throughout the Project’s duration, the Contractor will have sufficient resources available to perform and complete the Work in accordance with the Project Schedule (as defined in Exhibit D). Furthermore, the Contractor represents and warrants that any labor or other agreement it may have with its employees or any entity representing them does not expire prior to the Guaranteed Completion Date (as hereinafter defined); provided however, that the collective bargaining agreements governing craft labor required for the performance of the Work do contain wage escalation provisions that may increase wage rates and, accordingly, the costs of labor over the course of the Project. Copies of these agreements will be made available to the Owner upon request.

Cost of Work Clause

Cost of the Work. The Cost of the Work shall be limited to costs reasonably incurred by the Contractor in the proper performance of the Work (as further described below, the “Cost of the Work”), which shall exclude any components supplied by Owner or others. Contractor equipment, labor and supervision shall in be billed in accordance with Contractor’s then current rate schedules (the version effective as of the execution date of this Agreement is attached hereto as Exhibit E). All remaining costs shall be at rates comparable to the standard paid at the place of the Project . Contractor is directed to employ a forty (40) hour work week and not utilize overtime or premium time rates or incur material or equipment expediting costs, unless the Owner has approved the use of such overtime or premium time or expediting costs in writing in advance. In addition, Contractor shall keep Owner regularly apprised of crew sizes and shall provide written monthly reports documenting actual versus estimated man-hours expended in the course of the Work. The Cost of the Work shall include only the items set forth in this Section 5, as follows:

5.1 Wages of construction workers directly employed by the Contractor to perform the construction of the Work at the site or in Contractor’s fabrication facilities.

5.2 Wages of construction workers directly employed by the Contractor to perform the construction of the Work at locations other than the site, provided that the nature and scope of such off-site Work is approved in writing in advance by the Owner.

5.3 Wages or salaries of the Contractor’s supervisory and administrative personnel wherever located or engaged, but only for that portion of their time required for and directly related to the performance of the Work.

5.4 Costs paid or incurred by the Contractor for employee-related insurance, contributions, assessments, travel, subsistence and benefits required by law or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as employee-related insurance, contributions, assessments, sick leave, medical and health benefits, holidays, vacations and pensions, provided such costs are based on wages and salaries included in the Cost of the Work under Paragraphs 5.1, 5.2, and 5.3.

5.5 Actual payments made by the Contractor to Subcontractors in accordance with the requirements of the applicable subcontracts and supply contracts, and subject to the provisions of Section 26 and its subparagraphs. As used in this Agreement, the term “Subcontractors” shall include all subcontractors and suppliers under a direct contract with Contractor.

5.6 Costs, including transportation and installation, of materials and equipment incorporated or to be incorporated in the completed Project. Costs, including transportation, installation, maintenance, dismantling and removal, of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by the construction workers which are provided by the Contractor at the site and fully consumed in the performance of the Work; and cost less salvage value on such items if not fully consumed, whether sold to others or retained by the Contractor. Cost for items previously used by the Contractor shall be fair market value.

5.7 Rental costs of machinery and equipment used in the performance of the Work; provided that in no event shall such rental costs paid for particular items of machinery or equipment exceed the market rate purchase price of such items.

5.8 Costs of installing equipment and components furnished by the Owner (“Owner-Furnished Components”).

5.9 Costs of removal and disposal of debris from the Project site.

5.10 Premiums for insurance, to the extent of the portion directly attributable to this Agreement.

5.11 Costs of permits, fees, tests and inspections paid by the Contractor pursuant to Section 20.

5.12 Costs relating to any general conditions and overhead reasonably allocable to the Work and not to any other project. These costs include items such as utilities, telecommunications, water coolers, portable toilets, etc.

5.13 Cost of the building permit, if obtained by the Contractor; provided, that this cost shall not be subject to Contractor’s markup or fee.

5.14 Other costs incurred in the performance of the Work if and to the extent approved in advance in writing by the Owner.

Changes Clause

Changes. Without invalidating this Agreement, the Owner or Contractor may order changes in the Work within the general scope of this Agreement consisting of additions, deletions or other revisions (each a “Change Order”). It is expressly understood and agreed that the Contractor shall not be entitled to additional compensation or an extension of the Contract

Times for any extra or additional work or for work outside the scope of the Agreement, except as set out in this Section 10.

10.1 The Owner and Contractor shall enter into a written Change Order signed by both parties stating the changed Work to be performed, any agreed changes in the Contractor’s Fee, and any agreed changes in the Contract Times. Any extra or changed work performed without prior written direction or approval of Owner shall not be compensated by Owner.

10.2 If the Owner and Contractor are unable to agree on the changes in the Contractor’s Fee or the changes in the Contract Times, the Owner may direct the Contractor in writing to perform the changed Work and the Contractor shall immediately perform such Work. In such case, and subject to Section 4 above, (i) the Contractor’s Fee shall be calculated in accordance with the following mark-up schedule, as applied to the actual change in the Costs of the Work: 20% on staff labor and supervision; 15% on direct and fabrication labor; 10% on materials and equipment and 5% on Subcontractors; and (ii) the Contract Times shall be adjusted based on the reasonable actual impact on the Contractor’s performance of the Work. If the parties are unable to agree on the changes in the Contractor’s Fee or in the Contract Times, the Owner shall determine any such changes, which shall be subject to arbitration if demanded by the Contractor.

Reference :

Security Exchange Commission - Edgar Database, EX-10.7 11 dex107.htm CONSTRUCTION AGREEMENT, Viewed May 18, 2022, < https://www.sec.gov/Archives/edgar/data/1381697/000119312507121562/dex107.htm >.

Construction Contract Review Cost

According to ContractsCounsel’s marketplace data, the cost of a project involving a construction contract is $922 on a flat fee.

Here is an article about legal contract costs.

Lawyers for Construction Contracts

When you are planning to take up a project, you need to tread with care. Especially if it’s a big project and there are general and subcontractors involved.

Before signing anything, make sure you go to a construction lawyer who knows everything about the construction contract.

A general attorney will not do well with this task. Because there are such nitty-gritty details to a construction contract, only an attorney specializing in the field can guide you thoroughly to save you from any trouble in the future.

Understand when the attorney guides you to get some clause stricken down or edited. If the contractor doesn’t budge, discuss it before you get involved in the project with your attorney.

Are you looking for an attorney? You will find some expert attorneys here in your area.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Meet some of our Lawyers

Samuel R. on ContractsCounsel
View Samuel
5.0 (61)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
7 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.

Recent  ContractsCounsel Client  Review:
5.0

"Everything went very quick, I am very satisfied with the results."

Anna C. on ContractsCounsel
View Anna
5.0 (40)
Member Since:
February 11, 2026

Anna C.

Business Lawyer
Free Consultation
Austin, TX
30 Yrs Experience
Licensed in IN, TX
Indiana University

I am a business attorney focused on practical, efficient contract drafting, review, and negotiation for healthcare organizations and growth-stage and established businesses. My work includes commercial agreements such as NDAs, MSAs/SOWs, leases, vendor and services agreements, SaaS, and employment and severance agreements. I partner closely with clients to identify key legal and business risks, deliver clear, business-minded redlines with concise issue summaries, and keep transactions moving. Clients value my responsive turnaround, judgment, and ability to balance risk with commercial objectives.

Recent  ContractsCounsel Client  Review:
5.0

"Working with Anna was a great experience. She was incredibly detail-oriented and took the time to answer all of my questions thoroughly. What stood out most was that she didn’t just provide redlines; she explained why each change mattered and walked me through the pros and cons in plain English. She was responsive, quick to communicate, and delivered everything within the timeframe I needed. Highly recommend her"

Moss S. on ContractsCounsel
View Moss
5.0 (3)
Member Since:
November 17, 2021
Christina M. on ContractsCounsel
View Christina
5.0 (12)
Member Since:
June 22, 2023

Christina M.

Legal Consultant
Free Consultation
Las Vegas, NV
19 Yrs Experience
Licensed in NV
UNLV Boyd School of Law

I am a regulatory transactional attorney with 16 years of in-house experience, largely in the gaming/gambling industry. I have negotiated various types and sizes of contracts from janitorial services for a small commercial building to multi-million dollar technology transactions. I also have a strong regulatory background that strengthens my ability to navigate contracts that are subject to stringent regulations.

Recent  ContractsCounsel Client  Review:
5.0

"Great lawyer and easy to work with. She really cares about your business."

Derek C. on ContractsCounsel
View Derek
Member Since:
June 19, 2023

Derek C.

Real Estate Attorney
Tampa, Florida
12 Yrs Experience
Licensed in FL, NM, NY
Barry University

With over a decade of experience in transactional legal work, I provide clients with comprehensive, practical, and tailored solutions in real estate, business law, and estate planning. My focus is on delivering precise, client-centered services that protect your interests and help you achieve your goals. What I Offer: Real Estate Law: Expertise in drafting, reviewing, and negotiating contracts for purchases, sales, leases, easements, title documents, and closings. Whether you're dealing with commercial, multifamily, or residential properties, I’ll ensure your transaction is seamless and secure. Business Law: Skilled in forming entities, drafting contracts, and other key negotiations. From startups to established businesses, I provide legal guidance to help you operate and grow with confidence. Estate Planning: Comprehensive estate planning services, including wills, trusts, powers of attorney, and healthcare directives. I work closely with clients to create customized plans that protect their assets and ensure their wishes are honored. Transactional Expertise: A proven track record of navigating complex deals efficiently and accurately, reducing risks and delivering results. Why Work With Me? Client-Centered Approach: I prioritize your unique needs, ensuring tailored solutions and clear communication throughout. Attention to Detail: My meticulous approach ensures that every document, negotiation, and agreement is handled flawlessly. Proven Results: For over 10 years, I’ve helped clients close real estate deals, secure favorable business outcomes, and establish estate plans that offer peace of mind. Let’s work together to secure your future, protect your assets, and simplify complex legal transactions. Contact me today to discuss how I can support your real estate, business, or estate planning needs!

John B. on ContractsCounsel
View John
Member Since:
June 21, 2023

John B.

Principal Attorney
Free Consultation
Indianapolis, IN
16 Yrs Experience
Licensed in IL, IN
University of Illinois Chicago School of Law

I am an attorney with over 13 years experience licensed in both Illinois and Indiana. I spent the early part of my career as a civil litigation attorney. Eventually, I moved into an in-house role, specifically as general counsel, to help companies avoid the pains of litigation. In doing so, I gained significant experience in executive leadership, corporate governance, risk management and cybersecurity/privacy. I bring this wealth of experience to my client engagements to not only resolve the immediate issue, but help implement lasting improvements in practices to avoid similar problems going forward.

Daniel W. on ContractsCounsel
View Daniel
Member Since:
June 22, 2023

Daniel W.

Attorney
Free Consultation
New York
25 Yrs Experience
Licensed in NJ, NY
HOFSTRA LAW SCHOOL

I am a Spanish-fluent corporate and commercial real estate attorney and broker licensed in New York and New Jersey. My pragmatic approach towards conflict resolution allows me to provide valuable advice to clients on avoiding issues of liability through effective risk management and strategic allocation of resources. I counsel businesses, developers, owners and investors on residential/commercial real estate and corporate transactions involving the acquisition, finance, development, leasing and disposition of all asset classes. In addition, I advise on joint venture partnerships and the negotiation, structure and drafting of operating agreements. Throughout my successful practice, I have held in-house counsel positions at large corporations, including JPMorgan Chase and Duane Reade, and had the privilege of working for the Department of Justice where I honed expertise in all aspects of mortgage-backed securities.

Find the best lawyer for your project

Browse Lawyers Now

See Real Construction Agreement Projects

California Construction Contract Drafting
  • California
  • 5 lawyer bids
  • $345 - $5,000
View Details
Texas Construction Contract Review from GC to Electtical Contractor Review
  • Texas
  • 9 lawyer bids
  • $490 - $1,000
View Details
Georgia Construction Contract Review Review
  • Georgia
  • 5 lawyer bids
  • $250 - $1,500
View Details
Nevada Construction Agreement Review - 1371 Review
  • Nevada
  • 4 lawyer bids
  • $298 - $400
View Details
California Construction Agreement Review Review
  • California
  • 7 lawyer bids
  • $250 - $700
View Details
Texas Review Construction Agreement for Subcontractors and General Contractors Review
  • Texas
  • 5 lawyer bids
  • $350 - $1,000
View Details

See all Construction Agreement projects

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Construction Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 19,738 reviews
CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers
CONSTRUCTION CONTRACT REVIEW LAWYERS BY CITY
See All Construction Contract Review Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a Construction Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 19,738 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city