The good news is that owners can reduce construction costs and risks. Following are Stark & Stark’s Top 10 tips for owners to consider:
- Refinance. You can cut construction costs, improve loan terms, and reduce risks by taking advantage of low interest rates, rising property values and available financing.
- Obtain Competing Proposals. You can save money and reduce risks by obtaining proposals and information from competing contractors and choosing the best for your job.
- Expedite Documents. You can save money and reduce risks by expediting the negotiating and drafting of construction contracts, lien and claim waivers, and other documents you need.
- Cap Costs. You can limit construction costs to a guaranteed maximum price and also require that work be approved in advance in writing.
- Ensure Timely Completion. You can avoid delays by including deadlines and liquidated damages if work is not timely completed.
- Ensure Satisfactory Completion. You can prevent problems by including protections you need, including, adequate insurance, indemnification, payment and performance bonds, and lien and claim waivers and releases.
- Ensure Compliance. You can avoid fines and penalties by ensuring that all contractors and subcontractors timely obtain permits and approvals and comply with laws, codes, ordinances, rules, regulations, and restrictions.
- Obtain Insurance. You can cut costs and reduce risks by obtaining and reviewing all insurance policies to ensure that they are up to date and you and other parties actually have adequate insurance.
- Avoid Ambiguity. You can prevent problems by ensuring that contracts, plans and other documents say what you mean, do not conflict, and that any ambiguity will not be interpreted against you.
- Include Other Protections. You can cut costs and reduce risks by including other rights you need in your jurisdiction, including rights to withhold payment, limit your liability, pursue the dispute resolution option you choose, and recover damages and legal fees.
These are just a few ways you can reduce construction costs and risks with the help of experienced counsel. Evaluating these issues requires careful review on an individual basis. The attorneys at Stark & Stark can help you address these and other issues.