Cian BrennanFounder, Quantum Contract Solutions · Founder

Do This Before Signing Any Construction Contract

Name: Do This Before Signing Any Construction Contract
Uploaded: 2023-09-10T22:00:14+00:00
Duration: 35 s
Channel: Cian Brennan
Description: Before signing a construction contract, check the escape hatch: review the termination clause so you can exit if needed, and make sure the dispute…

10 Sept 2023 · 1 min

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Before signing a construction contract, check the escape hatch: review the termination clause so you can exit if needed, and make sure the dispute resolution clause won't force you into expensive arbitration. Arbitration can cost more than the project itself on smaller jobs.

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This is the one thing you need to do before signing any construction contract. You need to check what is my escape hatch. So what that means in practicality is how do I get out of the contract if something goes wrong, if there's termination, if we get into a dispute, how do we solve that particular issue? So what you need to do is you need to check the termination clause to make sure that it's written in a way that is favorable to you, and you've got to make sure the dispute clause makes sense. Like, you don't want the next step in a dispute clause to go to arbitration or something that's going to cost 100 grand before or you even leave the office. It needs to be something that makes sense for the size of the project that you're on.