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Most owners and other contracting parties prefer to use in-house
standard form agreements. These may often be created or "blessed" by
management or legal counsel in a general sense without regard to
specific project conditions or requirements. When a contract is amended
or incorporates separate documents, consider conducting a review of the
contract in its entirety, looking for competing or conflicting duties,
rights and obligations.
Because contracts will generally have successful results for all parties
of the contract only if the contract reflects a mutual agreement on
specific project conditions and obligations, contract reviews of
standard form contracts for specific projects are a critical step in
achieving favorable project results for all parties.
Some contracting parties will always seek to impose the harshest, most
onerous terms possible, often cloaked in justifications along the lines
of "protecting my client's interests" or "others agree to these
provisions". Research on project dispute avoidance and dispute
resolution indicate one-sided bargaining does not provide the best
overall project outcomes and generally undermines the positive
relationships necessary to overcome difficult project circumstances and
build a sustainable working relationship. Organizations that seek to
gain superior project performance and differentiate themselves from the
competition should consider use of interests-based, principled
negotiations based on mutual gain
(see Negotiation Skills and Strategies).
Construction industry problems follow general patterns and have similar
root causes. A detailed contract review can focus on these common
problems and root causes during contract formation and negotiation, to
permit the issues to be addressed before the problems arise.
Contact Contract Solutions Group for project specific contract reviews
that cover more than fifty specific issues, and risk mitigation
strategies for common or specific problems.
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