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Contract languages can make subcontracotors responsible for cost of design changes.(Construction Corner)(Brief Article)

Business Credit

| November 01, 2004 | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Is your firm providing design-build warranties for design-bid-build projects? Language in written subcontracts can force subcontractors to pay for added building costs resulting from changes to faulty or incomplete designs. In particular, broad, "intent"-type contract language can effectively transform all of the plans and specifications for a project into a massive performance specification. For example: "Subcontractor shall conform to and abide by any additional information and Plans as may be prepared by the Architect to further describe the Work to be performed by the Subcontractor, insofar as consistent with the purpose and intent of ...

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