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The Performance Duties Provision Part 2

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As a contractor, you want to be paid for all of the work that you do without worrying about working beyond the scope of your contract. As an owner, you want to be certain that your project will be completed as close to the estimated cost as possible without being subjected to unexpected fees. The best way to level the playing field for contractors and investors is by having a Naples contractor lawyer draft the Performance Duties Provision into your contract.

In part one of this two-part series, the Naples contractor lawyers at Cotney Construction Law introduced the Performance Duties Provision and the most common issues associated with this provision. Now, we will discuss how you can prevent a conflict by including certain pieces of information in your provision.

Preventing a Dispute

You can avoid many of the common issues with the Performance Duties Provision by ensuring the provision is consistent with your firm’s abilities and drafted with clear language that eliminates the potential for any uncertainties or disputes. If you do become locked in a dispute with an investor, you can greatly minimize the disruption by establishing dispute protocols before entering a contract or commencing the building process. We recommend working in conjunction with an independent counsel to review your provision. If you develop the Performance Duties Provision to consider the needs of the contractor and the investor equally, you can streamline the resolution process and avoid a time-consuming legal battle when a dispute arises.

Drafting Your Performance Duties Provision

When you draft the Performance Duties Provision, you want to be certain that you thoughtfully consider your firm’s abilities and the needs of the investor. In order to avoid a dispute and possible litigation, your provision should include:

  • Incorporation of the project’s documents and specifications relating to design, services rendered, and expected costs as well as any potential costs or issues.
  • Verification that all documents and specifications are complete, clearly drafted, and current.
  • Assurance from the contractor that all construction will meet the standards and specifications established in the design plan.
  • Information detailing the express warranties by the contractor guaranteeing that all work performed will meet the requirements established in the design plan and specifications.
  • An account of the planned dispute resolution systems aimed at efficiently handling issues that arise during development.
  • Updated information regarding increased standards of workmanship and associated costs.
  • A straightforward description of the risks and responsibilities incurred by the contractor and the investor.

The Performance Duties Provision is an effective way to foster the accountability of both parties engaged in a construction contract. If you are interested in utilizing the Performance Duties Provision for your next project, our Naples contractor attorneys can help you draft an airtight provision to help you avoid potential disputes.

If you would like to speak with a Naples contractor attorney, 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.