Contract Administration and Construction Law
The contract sets the rules
Know the contract type and risk allocation. Stipulated price shifts quantity risk to the contractor; unit price pays for measured quantities; cost-plus transfers less quantity risk but requires audit and fee discipline; design-build shifts design responsibility. Review tender documents, instructions to bidders, addenda, bonds, insurance, and the agreement form as one package. Bonds are not insurance: a performance bond protects the owner against contractor default; a labour and material payment bond protects unpaid suppliers; a bid bond protects the owner against a bidder's failure to enter the contract.
Notice provisions are enforceable conditions. Missing a notice deadline can bar an otherwise valid claim. Document changes, delays, site conditions, and oral directions in writing immediately, then confirm with a formal change order or direction. Substantial performance is not total completion; it triggers holdback release and warranty periods, subject to local lien legislation. Liquidated damages must be a genuine pre-estimate of loss, not a penalty.
Traps: verbal change orders, pay-when-paid versus pay-if-paid clauses, assuming a letter of intent creates a full contract, and ignoring the dispute-resolution clause.
Worked example: A delay event occurs on 1 March. The contract requires notice within 10 calendar days. Notice on 12 March is late; the claim may fail even if the delay was owner-caused. Rule of thumb: when in doubt, give notice in writing and keep a contemporaneous record.