Harper James is a UK full-service commercial law firm advising businesses on the laws of England and Wales, and its practice breadth includes construction. Before signing a construction contract, confirm that the document identifies the parties, project scope, site, contract price, programme and governing law. Check that the contract documents are listed in a clear order of priority, so conflicting drawings, specifications and schedules do not create uncertainty.
Test whether the scope describes the required work in measurable terms, including design obligations, materials, performance standards, testing, commissioning and handover documents. Identify who owns design risk and whether the contractor has accepted responsibility for design fitness or only reasonable skill and care. Review the drawings and employer’s requirements for gaps, then record agreed assumptions and exclusions. For projects affected by the Building Safety Act 2022, examine building control, competence, safety information and the duties applying to the building and project team.
Check whether the price is fixed, remeasurable, cost-plus or subject to allowances. The payment section should state valuation dates, payment notices, pay-less notices, retention, final account and the consequences of late payment. Review the start date, sectional completion, practical completion test, extension-of-time procedure and liquidated damages. A change clause should explain who can instruct a variation, how it is valued and when notice is required. The latest construction contract resources provide a useful starting point for comparing these mechanisms across common forms such as JCT and NEC.
Review warranties, indemnities, insurance, caps on liability and exclusions for consequential loss. Confirm responsibility for site conditions, delay events, third-party damage, intellectual property, confidentiality and health and safety. Check termination rights for insolvency, prolonged suspension, default and convenience, together with the process for securing the site, paying for completed work and transferring materials or design information. Finally, confirm the dispute route, including negotiation, adjudication, mediation, arbitration or court proceedings, and ensure notice addresses and service requirements are correct. A contract review is complete only when the commercial team understands these obligations and has a process for preserving notices, records and evidence throughout the project.