Construction Contract Disputes California Construction Contract Legal Disputes

The best way to avoid any construction contract dispute is to cover every contingency in the contract. What's not easy is anticipating all likely disputes. To reduce your risk of a dispute, avoid signing a construction contract with any of the following clauses.

Key Options In CCW that Bias the Agreement in Favor of the Property Owner

Navigator Topic	Question	Selection
Scope of Work – General	Which form of the scope of work clause?	Broad form.
Disclaimer by Owner	What are the conditions at the job site?	Owner disclaims conclusion of contractor.
Employee Relations	What's in the contract on employee relations?	Owner can discharge employees for cause.
Responsibility for Safety	Who's responsible for safety on the job?	Owner is not responsible for job site safety.
Authority of Representative	What tasks can the representative handle?	Representative can reject any work.
Authority of Representative	What tasks can the representative handle?	Representative interprets the plans & specs.
Subcontracted Work	What's in the contract on approval of subs?	Owner may reject any subcontractor.
Differing Site Conditions	What's in the contract on differing conditions?	No change order for differing site conditions.
Qualifications – Site Conditions	What's in the contract on differing conditions?	No pay for abandoned work.
Release of Claims by Contractor	What's in the contract on release of claims?	Final payment releases all contractor claims.
Retainage Basics	Will retainage be deducted from payments?	Yes
Grounds for Withholding Payment	Which are valid reasons to withhold payment?	Failure to keep the work on schedule.
Changes in the Work	Do changes require mutual agreement?	Owner can require changes.
Options When Pricing Changes	What's in the contract about pricing changes?	Owner can pay the estimated cost.
Right to Payment for Extra Work	Does the right to a change order expire?	Contractor must assert the right to extra pay.
Defective Work	What standard is used to evaluate the work?	Any unsatisfactory work can be rejected.
Warranty	What's the warranty on labor and materials?	Broad form warranty.
Notice of Claim	What's in the contract about notices of claim.	Notice is required within 5 days of discovery.
Liability for Damage – Owner Bias	What's in the contract about liability for loss?	Contractor is liable for all damages.
Indemnity	Will contractor reimburse owner for losses?	Yes
Payment for Inspections	Who's responsible for passing inspections?	Contractor bears the cost of corrections.

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