How Can I Be Effective at Construction Contract Negotiation?

July 22, 2024

Contract negotiation skills are a necessity for anyone in the construction industry. If you cannot get a contract signed, you’re not getting that next project off the ground. Many people are involved in these projects and they all have different priorities and goals. Making them come together can be tough, but our Houston construction contract lawyers may be able to help.

How Can I Prepare for Contract Negotiation?

It’s important to walk into a contract negotiation prepared. We recommend:

Doing your homework : Know everything that you need to know about the other parties involved. Treat it almost like a job interview. You wouldn’t go in for an interview without researching a company first, right? So don’t go into negotiations blind. Your research could help you find common ground.

Defining your goals : You can’t be wishy-washy during these negotiations. Figure out your goals and know what you need from an agreement. Also separate what you absolutely need from this project and what would just be nice to have. That can give you more negotiating power.

Knowing when to walk away : It’s also important to figure out what would be a deal-breaker. It’s not wrong to walk away from a deal if it cannot fulfill your criteria! There’s always the next negotiation.

What is So Important About the Contract Negotiation Process?

You cannot discount the importance of the contract negotiation process. Every project needs structure and this is the chance to make the goals, responsibilities, and costs clear for everyone. If different parties have different interests or concerns, this is when they can be brought together and sign a contract that they have confidence in.

How Can I Make Contract Negotiation Go Smoother?

You should not try to dominate the contract negotiation process. Make sure everyone is able to participate and make their issues or goals known. You should:

  • Take the time to listen
  • Make the process feel like a collaboration
  • Ensure that everyone knows the scope of work
  • Be upfront about any risks
  • Be clear about change orders and what happens if something goes wrong
  • Talk about insurance, warranties, bonds, and other similar requirements
  • Discuss what will happen if a conflict arises later
  • Get absolutely everything in writing

Do I Need a Lawyer?

It’s always a good idea to have a lawyer look over any contract before you sign it. Even if you think that you are the best at contract negotiation and that you got everything that you wanted out of this deal, it’s wise to have a third party take a look at what you are agreeing to. Our lawyers are well-versed in construction law and can help you spots any gaps in your agreement or clauses that could cause you headaches later.

Contact Our Construction Attorneys

So if you are entering into the contract negotiation stage of your next project, contact Patout & Shaw. Attorneys from our firm can help you look out for the best interests of your business and craft an agreement that will make everyone happy.

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