While it is becoming apparent that every one has some sort of contract in the construction business, you do not want to overlook important details in the rush to get work started on a specific project. There are three clauses that Alex Barthet finds overlooked the most including having no waiver of consequential damages:
Consequential damages are damages that flow from a breach of the contract but are not directly related to the breach. Consequential damages an owner may suffer include lost rental income or higher loan payments associated with a construction loan that wasn’t converted to a permanent loan. Always try to limit these types of damages in your contracts; doing so is an easy way to limit your financial risk if a job does not go as planned. In fact, many standard contract forms, such as those published by the American Institute of Architects, include waivers of consequential damages.