4 mistakes to avoid when drafting contracts for a construction project

On Behalf of | Dec 9, 2021 | Construction Law |

For nearly any business venture, a stable contract represents the cornerstone of a successful relationship. When drafting a contract centered on the successful completion of a construction project, individuals and business owners alike must ensure the documents are focused, comprehensive and clear.

Every construction project revolves around numerous unique factors. Timeline, money, materials and penalties are different for every phase and organization. Even so, there are certain mistakes that people must avoid when drafting a new contract or reviewing an existing one, including:

  • Using vague language: This mistake is often the crux of other errors deeper into the contract. People must draft contracts using clear language that is understandable by all parties. When drafting a contract, parties must avoid corporate lingo, acronyms and jargon. People must define these terms in the contract.
  • Avoiding specificity: Individuals must write the contract to exacting standards. One mistake parties make is relying on unclear objectives and vague timelines. Setting proper expectations, goals and project durations is necessary when drafting any document.
  • Slanting the language too far in your own favor: It is not uncommon for a business owner or private party to seek to favor their own goals in a contract. Unfortunately, slanting the language too far in one direction might invalidate the contract and prove it unenforceable.
  • Avoiding a discussion of penalties: While this might be an unsavory topic, individuals must draft a contract specifying penalties or consequences for objectionable work. Missing certain milestones, for example, or presenting substandard work should have clear consequences listed in the contract from day one.

Construction deals are dependent upon strong contracts. These documents must be clear and enforceable, or the project might never reach a successful conclusion. Additionally, the court might invalidate an improperly drafted contract meaning there are no penalties for incomplete or substandard work. If the contract is not enforceable, the parties have limited ability to force compliance.


FindLaw Network