Construction Subcontracts: Contractor's Drafting Checklist

by Levi W. Barrett and Nathan A. Cohen, Peckar & Abramson, P.C., with Practical Law Real Estate

This Checklist provides essential drafting considerations for contractors preparing construction subcontracts, ensuring effective flow down of responsibilities and risks to subcontractors. It guides contractors in drafting, reviewing, and negotiating subcontract agreements across various pricing methods. Key topics covered include defining the scope of work, confirming flow down of prime contract provisions, seeking optimal payment terms, and avoiding subcontractor lien exposure. The Checklist emphasizes the importance of clearly defining retainage rights, ensuring protections related to hazardous materials, and addressing differing site conditions. It also addresses subcontractor rights concerning work stoppage for nonpayment or breach, clarifying obligations related to performance time and delays, and defining liability for consequential and liquidated damages. Additional considerations include insurance requirements, warranty obligations, notice and claims provisions, dispute resolution processes, and assigning design liability. This resource is invaluable for contractors aiming to streamline subcontract management and mitigate project risks effectively.