Mistake 1: Vague Scope of Work
Generic scope descriptions like “all work necessary” create disputes about what’s included. Every trade scope should reference specific drawings, specifications, and exclusions. Our construction contract guide covers scope drafting in detail.
Mistake 2: Missing Indemnification
Without clear indemnification, recovering losses from a subcontractor’s negligence requires litigation. California’s anti-indemnity statutes under Civil Code 2782 add complexity. Clark Meyers PC calibrates every indemnification clause to state-specific requirements.
Mistake 3: Inadequate Change Order Procedures
The AGC reports change order disputes as the leading source of construction litigation. Effective provisions define authorization, pricing methodology, and documentation requirements before work proceeds.
Mistake 4: No Dispute Resolution Clause
Without a mandatory mediation-then-arbitration clause, every disagreement defaults to expensive litigation. Construction-specific dispute resolution should include interim mechanisms for time-sensitive issues.
Mistake 5: Lien Waiver Gaps
Improper lien waiver exchanges create payment chain exposure. Every progress payment should include conditional waivers from all parties in the payment chain. See Contract Drafting & Compliance.
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Lee Clark
Licensed ID & CA. Arbitrator, Judge Pro Tem, mediator since 2008.
Conor Meyers
CEO/GC of ACE Building Envelope Design. CLO of ZEA Biosciences.