In the constant churn of the construction industry, it’s critical for businesses to take stock of their contractual obligations regularly. As we transition from one year to the next, professionals working in this field should consider conducting a thorough ‘contract check up’, a strategy that is particularly relevant for ongoing, long-term projects.
A useful advice comes to us from Snell & Wilmer, through their recent piece ‘A Contract Check Up for the Construction Industry’. They advocate for taking the time to review the context under which contracts were created and executed. This helps ensure these contracts accurately reflect the reality on the ground as the project progresses.
It’s a given that construction projects ebb and flow, with variables such as workforce, materials, timelines, and funding often in flux. A contract that was well-structured and suited at the beginning of the process might, over time, fail to encapsulate the evolving conditions.
- For instance, the availability and cost of materials may have changed significantly during the course of the project. If your contract doesn’t make provisions for such fluctuations, you may find yourself on precarious footing.
- An additional consideration is workforce stability. With the prevailing uncertainty around global health issues, managing schedules and ensuring enough personnel on-site might add levels of complexity not originally foreseen in the contract.
- Lastly, changes in legislative or regulatory frameworks may necessitate revisions to your contract. Requirements related to environmental impact, for example, might have been updated since the contract was entered into.
Marrying the fluid nature of construction projects with the stringent formalities of contract law proves a constant challenge. Maintaining an agile approach and undertaking regular checks could help ensure your contracts stay relevant, fair, and protect your interests despite the shifting sands beneath. It’s a practice worth considering, not just at the end of a calendar year, but an integral part of maintaining contractual health.