Holloway Consulting as a leading provider of Construction Claims Consultant services. In our experience, both general and specialty contractors on a wide variety of projects are knowingly and unknowingly assuming increasing risks in their contracts. This series of posts are designed to provide contractors with a better understanding of hidden job risks that repeatedly arise on our projects and cases. These posts also provide examples of how Holloway Consulting has helped clients avoid and manage such risks:
Construction Claims Consulting
Construction BID PHASE RISKS
First, a word of caution regarding contract ambiguities: The test of an ambiguity is whether or not there are two or more interpretations which can be deemed reasonable, particularly in the local jargon of the trade in question. Ambiguities are often construed against the drafter of the contract document, but if an apparent ambiguity is found, it is best to inquire in writing, because there is no certainty regarding the ultimate resolution of ambiguities. Any intentional or covert plan to capitalize on a contract ambiguity or omission at a later date is not recommended.
During the bid phase consideration should be given to the time frame in which the work is to take place, and the form of the subcontract agreement which the prime contractor later expects his subcontractors to execute. Too many subcontractors purposely avoid investigation of project time frames and contract format because they are aware that, once the information is in their hand, they must either agree, or create an early confrontation by voicing their objections through bid qualifications, which may result in their bid being considered non-responsive. Regardless, it is imprudent for a subcontractor to seek work without at least some preliminary mutual understanding of what the prime contractor expects in these two areas.
In our work as Construction Claims Consultants, we find that the subcontractor is at times not going to be willing to sign the prime’s subcontract, as a matter of good business sense, and at times the prime or general contractor is not going to be receptive to the modifications that the subcontractor suggests or requires. However, as a practical matter, work should not begin without a signed contract – this point may seem obvious, but many of our disputes cases involve work performed without a contract in-place.
Contact Steve Holloway – Toll Free – at 888-545-0666 about your requirements
Construction Claims Consultants
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International Toll Free: (888) 545-0666
Fax: (303) 716-0432
See Selected Pages at hcgexperts.com, a/o 12-20-11
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