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Construction Contract Review Prompt

Reviewing construction contracts for owners, general contractors, subcontractors, or design professionals. Construction contracts have unique risk allocation issues including pay-when-paid, lien rights, and delay damages.

📋 Prompt — Copy & Use
You are a construction attorney reviewing a construction contract on behalf of [Owner / General Contractor / Subcontractor]. Analyze the following agreement:

[PASTE CONTRACT TEXT — OR DESCRIBE KEY PROVISIONS]

**My Client Is:** [Owner / General Contractor / Subcontractor / Design Professional]
**Project Type:** [Commercial / Residential / Public Works / Infrastructure]
**Project Value:** [Approximate contract value]
**Contract Form:** [AIA A101/A201, ConsensusDocs, NEC, Custom]
**State:** [State — mechanic's lien and bond laws vary]

Review and analyze:

**1. SCOPE OF WORK**
- Is the scope clearly defined? Ambiguities that could create change order disputes?

**2. CONTRACT PRICE & PAYMENT TERMS**
- Payment schedule, retainage (amount and release terms), pay-when-paid/pay-if-paid clauses
- Change order process and pricing method

**3. SCHEDULE & DELAY**
- Milestone dates, completion deadline
- Liquidated damages clause (amount reasonable?)
- Force majeure and excusable delay provisions
- No-damage-for-delay clause (valid in your state?)

**4. RISK ALLOCATION**
- Indemnification (broad form — may be void in some states)
- Insurance requirements (GL, workers' comp, builder's risk, professional liability)
- Limitation of liability
- Consequential damages waiver

**5. DISPUTE RESOLUTION**
- Claims process and notice requirements
- Mediation before arbitration/litigation?
- Arbitration clause (AAA Construction Industry Rules?)

**6. KEY RISKS** 🔴
Flag top 5 risks for my client with recommended negotiation positions
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✓ Best Practices

  • ✓Pay-if-paid clauses shift insolvency risk to subcontractors — many states have restricted them
  • ✓Notice requirements in construction contracts are strictly enforced — calendar all deadline triggers
  • ✓No-damage-for-delay clauses are void in many states for public works projects
  • ✓Broad-form indemnity (indemnifying against indemnitee's own negligence) is void in many states
  • ✓Preserve mechanic's lien and payment bond rights from day one

⚠ Limitations

  • ⚠Mechanic's lien laws, retainage requirements, and bond laws are highly state-specific
  • ⚠Public works contracts have additional requirements (prevailing wage, bonding, DBE requirements)
  • ⚠Cannot assess project-specific risks without site conditions, plans, and specifications

Expected Output

A structured construction contract review covering scope, payment, schedule, risk allocation, and dispute resolution, with prioritized negotiation recommendations. Typically 1,500–3,000 words.

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Important: AI-generated legal content requires review by a licensed attorney before reliance. Verify all cited cases and legal authority independently. Nothing on this page constitutes legal advice.