Colorado Construction Contract Lawyer

Information About Navigating Construction Contracts in the State of Colorado

Over the last several decades, the construction industry has seen tremendous increase in technology, growth and prosperity. As the construction industry continues to evolve in the 21st century, so do the contracts that bind participating companies. Owners, contractors, subcontractors and developers can all be held liable when construction problems arise. One of the easiest ways to protect yourself and your assets is to insist on having a solid construction contract from the very beginning of the construction project.

In today's construction, most of the contract documents begin as "boilerplate" contracts created by various construction associations. While these standardized contracts have their advantages, they often carry some distinct disadvantages as well. Many owners and developers may find themselves assuming an unnatural portion of the financial liability. Construction delays, construction disputes and design flaws are just a few of the issues that can arise, costing owners and developers thousands of dollars.

Before entering into a construction contract, it is important to have a qualified construction litigation attorney review the documents carefully to determine if you are assuming unnecessary legal risks. The scope of the work should be outlined clearly as well as the preferred method of handling legal disputes, should they arise. The majority of construction contracts will carry a binding arbitration clause that requires all construction disputes to be handled by a third party mediator. These alternative dispute resolution clauses are generally considered to be less expensive and are favorable to all parties involved.

Construction contracts should also require contractors to provide a schedule of values to protect against overpaying and keep the job on budget. In addition, most construction contracts allow for the owner to withhold 5-10% of each payment until the end of the project. If both parties are willing, this percentage can be reduced to allow the contractor to realize some of his profits ahead of time.

Owners wishing to protect their properties and decrease their liabilities will also want to include an indemnification clause and lien waiver. An indemnification clause protects the owner from liabilities that may arise due to contractor/subcontractor disputes, on the job injuries or property damages that may occur. Contractors and subcontractors are often required to sign lien waivers before receiving their final payments. This ensures that mechanic's liens are not filed against the property after final payment has been issued.

These are just a few of the considerations that owners, contractors and subcontractors need to keep in mind when entering into construction contract negotiations. A qualified construction litigation attorney will be able to review all contracts on your behalf and negotiate a reasonable contract that will represent your company's best interests.

Colorado construction contract lawyer Jeffery A. Knoll is committed to resolving issues related to your construction project contracts. If you have questions about protecting yourself or your company from costly construction litigation, our law firm can help. Your initial consultation is always free. We are Colorado’s construction litigation law firm. Call today at (303) 985-1185.