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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.