SAEA member, Engineer Omar Abdelrazzak, President at Damas Group: Architects, Engineers, Contractors frequently contributes his expertise over 30 years of experience in construction in the US and abroad to SAEA conversations. In a recent conversation, he shared the importance of construction contracts and code compliance in shifting and managing risk.
He suggests that the characteristics of a well-written construction contract include the following elements:
-Time
-Design Issues
-Acts of God/ Effects of Weather
-Funding
-Regulatory Risk
-Damage To Third Parties/ Indemnity
-Price
-Contract Time/ Change Orders
-Project Schedule
-Delay Damages
-Sureties
-Warranty Obligations
-How Notices and Disputes will be handled
-Liens On The Project
-Interim Progress Payments
-Insurance
-Disputes
-Allowances and Budgets
By covering the above important ingredients within a construction contract, the contractor effectively shifts and allocates risk and can expect higher chances of success in project completion.
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