Reading a Construction Contract: Key Clauses
Welcome
Hello, and welcome. This is Super Structures General Contractors — a national general contractor headquartered in Powhatan, Virginia — here to help you and your clients build something that lasts. We're glad you're with us, and we look forward to connecting with you.
Let me tell you why Reading a Construction Contract: Key Clauses pays off down the road. Here's what it really comes down to: Read every clause before signing — scope, payment (watch pay-if-paid and retainage), changes, delay/LDs, indemnity, termination, and dispute terms decide whether a job makes or loses money. Do this right and it shows up in your work, your reputation, and your paycheck.
The contract controls your money, your risk, and your remedies. Read every clause before you sign — "we'll work it out" is how contractors go broke.
Clauses that decide your fate
- Scope of work — exactly what you're (and aren't) responsible for. Vague scope = disputes.
- Payment terms — schedule of values, progress billing, retainage (often 5–10% held back), and when payment is actually due (pay-when-paid vs. pay-if-paid — a big difference).
- Changes clause — how extra work is priced and approved (almost always in writing).
- Schedule & delay — completion dates, liquidated damages, and notice requirements.
- Indemnification & insurance — who covers whom when something goes wrong.
- Termination — for cause vs. for convenience (owner can fire you with no fault).
- Dispute resolution — mediation/arbitration/litigation, venue, and attorney-fee clauses.
Flow-down & order of precedence
On subcontracts, flow-down clauses bind you to terms in the prime contract you may never have seen — ask for it. And know the order of precedence when documents conflict.
Takeaway: Read every clause before signing — scope, payment (watch pay-if-paid and retainage), changes, delay/LDs, indemnity, termination, and dispute terms decide whether a job makes or loses money.
Educational overview — not legal advice. Construction law varies by state and by contract; consult a licensed construction attorney for your situation.