Contract review
A contract review in construction terms involves a thorough examination and analysis of the terms, conditions, obligations, and specifications that are outlined within a contract that pertains to a construction project. The purpose being to ensure that the terms are fair, enforceable, and documented correctly, helping to clarify what happens if either party breaks the conditions laid out in the contract.
The contract review often represents the last chance for the engaged parties to identify issues and request changes before it is signed. As such it may be seen as or lead to opportunities to review certain clauses, such as the agreed price, programme or time-frame of the contract but not always successfully. In general points that will often be the focus of a contract review are likely to be conditions relating to payment terms, change management, liquidated and ascertained damages, design liabilities, allocating statutory requirements and related risks, approaches to dispute resolution and or termination.
In general it is considered good practice for a contract to be reviewed by specialist, during any negotiation stages and as a minimum before it is signed by the parties. The contract review is commonly carried out by a legal specialist third party, but can also be carried out individually be each involved party.
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