Tilt
Contract Bias Your Way
 You've probably
read construction contracts that seem biased – favoring one party over the
other. Exactly right: Every construction contract has a built-in bias. There's no
such thing as a standard construction contract that's fair to everyone and fits
every job. For many reasons, a contract like that doesn't exist. It can't. New Jersey Construction Contract
law has different requirements for different types of projects. The disclosures
required and payment terms vary with the type of work – residential, commercial,
industrial, public or private. What's fair for one type of job may be completely
unfair or illegal for a different type of work.
Just as bias varies in contracts, risk varies from job to job. The danger point
for every construction contractor is when bias and risk intersect. An experienced
construction contractor knows there's risk in a job with:
- An undercapitalized owner,
- An inexperienced designer,
- An aggressive building inspector,
- Demanding specifications,
- Short deadlines.
Jobs like those include obvious risk. By the time you've walked the job site, studied
the plans and bid the work, you probably recognize other risk that should be considered.
It's a shame if what you know about risk in the job (the owner, the plans, the work)
isn't written into the contract.
You need a construction contract with bias neatly tailored to avoid known risk.
No stock contract, no side agreement, no oral understanding, no tacit assumption
will substitute for specific contract language that covers what could go wrong.
Head off trouble when drafting the contract. Don't fumble that chance by recycling
a contract used on some other job. Draft an agreement that both fits the job and
avoids known problems. Protect yourself. A few minutes with New Jersey Construction Contract Writer can help avoid the
most common disputes that plague construction projects.
Specifics on Contract Bias
You won't see many construction contract forms that admit bias. But bias is there.
Forms promoted by architectural associations tend to protect the architect. Forms
promoted by property owner associations favor property owners. That shouldn't be
a surprise. Several trade associations offer stock contracts. None come with dozens
of options that can shift contract bias to meet job conditions. But that's what
you need. It's also what New Jersey Construction Contract Writer offers.
In New Jersey Construction Contract Writer, check the bias icon before responding
to any interview question.
As you click boxes and buttons, contract bias accumulates in the Contract Bias window.
To see the bias accumulated so far in your contract, click View on the menu bar.
Then click Contract Bias.
In prime contracts, the gold slice of the pie represents owner bias. The blue slice
of the pie shows contractor bias. The bias symbol at the left shows light bias in
favor of the owner. Every time you click a box or button with a bias icon, New Jersey
Construction Contract Writer recalculates the bias and displays the result as a
pie chart in the Contract Bias window. Wedges of the bias pie will swing back and
forth like a pendulum when you first start clicking. When you've responded to dozens
of questions, movement in the pie wedges will be barely noticeable.
In subcontracts, the blue slice of the pie still represents contractor bias. The
green slice of the pie shows subcontractor bias. The bias symbol at the left shows
light bias in favor of the prime contractor. The more blue, the more bias favors
the general contractor, whether in a prime contract or in a subcontract. A pie chart
evenly divided means contract bias doesn't favor either party.
You have better control, more options and extra security when contract bias is in
your favor. New Jersey Construction Contract Writer makes it easy to draft contracts
heavily weighted either way. But bending everything your way isn't necessary. A
more balanced contract will be accepted sooner and with fewer revisions. If the
owner is financially solid and considered easy to work with, bias on payment terms
and liens may be irrelevant. There's no need to weight those clauses heavily in
your favor. But if the same owner is in a hurry to take up occupancy, pay close
attention to bias when dealing with the construction schedule. Another example:
Suppose you feel the plans are incomplete and expect many revisions after work starts.
Consider bias very carefully when selecting clauses that spell out charges for extra
work.
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