Healthcare construction projects involve more than managing budgets and schedules. Owners must navigate contractual, operational, and legal risks that can affect delivery, increase costs, and create disputes long after construction begins.

From design coordination issues and force majeure delays to insurance gaps and warranty obligations, many significant risks arise from how contracts are drafted, administered, and enforced throughout the life of the project. Early planning and proactive risk management can help healthcare owners avoid common pitfalls and improve project outcomes.

Key Takeaways:

  • Contractor assumptions, clarifications, and exclusions can alter negotiated risk allocation if not carefully reviewed.
  • Design errors, delays, and unresolved change orders remain among the most common sources of disputes and cost overruns.
  • Effective notice procedures, warranty management, and lien protections are critical to preserving owner rights.
  • Insurance requirements should be carefully evaluated and actively monitored to avoid unexpected coverage gaps.
  • Strong project documentation and contract administration can help mitigate cumulative impact claims and other costly disputes.
Photo of Bart Reed Bart Reed

Bart Reed is a partner in the firm’s Seattle office and practices with the Real Estate and Construction group. With extensive experience in complex commercial and construction law, multistate litigation and ADR (representing clients in 28 states), Bart focuses his practice on construction…

Bart Reed is a partner in the firm’s Seattle office and practices with the Real Estate and Construction group. With extensive experience in complex commercial and construction law, multistate litigation and ADR (representing clients in 28 states), Bart focuses his practice on construction and design issues and disputes, representing owners, developers, contractors, subcontractors, design professionals and sureties, in diverse matters on both public and private projects. His experience covers a wide range of issues affecting design and construction clients, including contract drafting/negotiation, non-payment and surety claims, construction liens and payment bond claims, design disputes, construction defects, and scheduling issues in the defense and prosecution of delay/impact claims.

Click here for Bart Reed’s full bio.

Photo of Evan Brown Evan Brown

Evan Brown is an associate in the Construction & Design section of Stoel Rives’ Real Estate group. Evan has experience with a variety of litigation, transactional, and alternative dispute resolution matters for clients in the construction industry, including interpretation of contracts, statutes, and…

Evan Brown is an associate in the Construction & Design section of Stoel Rives’ Real Estate group. Evan has experience with a variety of litigation, transactional, and alternative dispute resolution matters for clients in the construction industry, including interpretation of contracts, statutes, and regulations; claim development and assessment; discovery, including electronic discovery; motion practice; and appeals.

Click here for Evan Brown’s full bio.