What Are Common Client Concerns in Construction Services Agreements?
There are specific concerns many contractors, homeowners, and other clients express when reviewing their construction services agreements. These documents clarify what work has to be completed, the payment terms, and who bears the risks. Construction projects are costly commitments, so their agreements need to be watertight.
Based on our data from ContractsCounsel, a platform where experienced lawyers and clients can connect to review and negotiate contracts, we’ve outlined the most common concerns clients have about construction service agreements. These include workmanship protection, payment clarity, legal compliance, and risk allocation.
Note: This research is taken from real, anonymized construction services agreement review postings on ContractsCounsel’s platform.
Completeness and Enforceability of the Agreement
Concern 1: A big concern for clients is that the agreement doesn’t have essential clauses or signatures to make it legally sound and enforceable.
How lawyers help: Construction attorneys check that the contract has everything required, from work scope and payment schedules to warranties. They also ensure that it is in line with state construction laws and regulations.
Workmanship Quality and Material Standards
Concern 2: We’ve found that clients usually have concerns about what they should do if the work doesn’t meet their standards or if there are substandard construction materials on site.
How lawyers help: A lawyer will add standards to ensure quality and inspection rights. Warranties should also be included so the work is in line with project expectations and building codes.
Change Orders and Payment Adjustments
Concern 3: If there are terms lacking regarding orders and payments, this can increase project costs and the risk of disputes.
How lawyers help: Lawyers review and draft specific processes for situations in which orders change or there are additional expenses. Having clear payment schedules keeps everyone accountable.
Risk Allocation and Liability Protections
Concern 4: It’s common for clients to want to know who’s responsible if there are construction delays, damage, or claims from third parties.
How lawyers help: Lawyers will review contract clauses on insurance, indemnification and liens so risks are shared and balanced. The agreement must follow local lien laws.
Project Timelines and Dispute Resolution
Concern 5: The construction project requires clear schedules to avoid disputes, delays, and missed deadlines.
How lawyers help: A lawyer will scrutinize the agreement to check that all milestones are clearly outlined. There should be a clause for delay notices and dispute resolution.
Compliance with State Laws and Regulations
Concern 6: Different states have different construction laws, so clients worry about the risk of noncompliance.
How lawyers help: Construction lawyers will ensure terms reflect the state’s requirements, such as in terms of contractor licensing and homeowner protection.
Key Takeaways
- Top client worries include quality of workmanship, compliance, and payment schedules.
- Conflict can be avoided with transparent clauses on risk and dispute resolution.
- A legal review ensures the agreement is fair and enforceable.
- A lawyer can check the document so it protects your rights and meets state law requirements.
Need help with your construction services agreement?
On ContractsCounsel, you can post your project for free and connect with vetted construction lawyers who draft and review construction agreements every day.