State-by-state legal review and revision of contract terms for a U.S. construction project

For a commercial interior construction project spanning multiple U.S. states, we reviewed the legality and contractual risks of the statement of work (SOW) to be signed with a local general contractor.

The key issues were the order of precedence between the existing standard contract and the SOW, responsibility for construction delays and additional costs, payment of the contract price and retainage, and liability for warranty of defects and termination. In particular, the differences between Delaware and Illinois construction contract laws had to be reflected.

We reviewed the construction contract laws of both states and prepared state-specific revisions concerning payment deadlines, limits on retainage, and lien waiver requirements.

We also reviewed liability for delays and the requirements for time extensions, the obligation to repair defects, responsibility for the cost of remaining work after termination, the scope of indemnification, and the governing law and jurisdiction clauses, and proposed specific revised contract provisions in English.

Taking into account each state's mandatory rules and how they interact with the existing standard contract, we identified the key legal risks in the SOW and provided proposed contract revisions and a legal opinion to clarify responsibilities during construction and in the event of a dispute.

Related U.S. practices: Contracts & Business Transactions