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Contract Considerations for Construction Design Professionals Part 2

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As more contractors take on their own design work, they need to make new considerations for their contracts. Improving your knowledge of contracts can help you make sure you’re not signing away your rights when you sign a contract. Continued from part one of this article, a Portland contractor lawyer discusses provisions you may want to consider if you’re a contractor doing design work in this article.

Alternative Dispute Resolution

Mediation or arbitration can be used in place of litigation in disputes if the contract involved has an alternative dispute resolution (ADR) clause. Using alternatives to litigation can save time, keep other projects going, and also be extremely cost effective. Choosing mediation may also help you salvage business relationships and stay on good terms with clients. Cotney Construction Law’s knowledgeable attorneys offer ADR services.

Third-Party Beneficiaries

The subject of third-party beneficiaries should be addressed in its own provision in your contract. Preventing parties not included in the contract from having rights and claims for third-party beneficiaries makes little sense since if they get have damages related to your negligence they may have the ability to file a claim without a contract.

If a contract doesn’t include this provision, do not assume it means there are no rights for third-party beneficiaries. Only explicitly stating the issue will offer any protection.

Termination

A termination clause isn’t something you normally think about at the beginning of a client relationship, but a provision for termination can relieve you of working with a client who has breached the contract. Circumstances for termination and rights for each party should be defined in the contract. If they are not defined, an already aggravated relationship can lead to a dispute.

A contract that allows the client to be the only party to terminate or transfer documents is not likely to be a contract you want to sign. That being said, it’s important to remember that you may prefer to suspend services rather than endure shutdown costs for a project.

Contract Review

Any of these clauses and provisions should be carefully written and reviewed. Having a Portland contractor lawyer from Cotney Construction Law review your contracts can help you protect your rights. Contractual language can be difficult to decipher, and it’s important to possess a full understanding of the project at hand before you sign your contract. If you need legal help related to contract review, mediation, or settlement agreements, Cotney Construction Law serves construction professionals like you.

If you would like to speak with our Portland contractor lawyers, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.