Saturday, April 18, 2009

The Owner-General Contractor Contract

Today I am going to start on series of posts on the Owner-GC contract. I am going to say something now that I do not normally say to my clients. If you are a contractor and you are undertaking projects, you should have an attorney write and/or review your contracts. I frequently tell my clients that they can proceed on their own with resolving disputes, etc. However, money spent now on a contract review can prevent thousands in legal fees later.

What is a contract? In a contract there is an offer (proposal), acceptance and consideration ($$ changing hands). A contract reflects a "meeting of the minds." A well-written contract addresses the issues that can arise and how they will be handled. As an arbitrator I know and respect stated, "A good contract is negotiated, signed and then sits on the shelf and collects dust."