Bean, Kinney & Korman, P.C.

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Construction Contracts

Strategic Drafting and Negotiation for Successful Construction Projects

Construction projects depend on clear, well-structured contracts that define responsibilities, allocate risk, and establish procedures for payment, scheduling, and dispute resolution. Poorly drafted agreements can lead to delays, cost overruns, mechanic’s lien exposure, and litigation.

Bean, Kinney & Korman represents owners, developers, general contractors, subcontractors, lenders, and design professionals throughout Maryland, Virginia, and the Washington, D.C. region in drafting, negotiating, and reviewing construction contracts. Our attorneys help clients structure agreements that protect financial interests while supporting efficient project execution.

From project planning through completion, we focus on creating contracts that reduce uncertainty and align with real-world construction practices.

Construction Contract Services

Owner–Contractor Agreements

  • Lump sum and guaranteed maximum price (GMP) contracts
  • Cost-plus and time-and-materials agreements
  • Scope of work definition and change order procedures
  • Payment schedules and retainage provisions
  • Indemnification and liability allocation

Careful drafting of owner-contractor agreements helps ensure accountability and project clarity.

Subcontracts and Supplier Agreements

  • Flow-down clause coordination with prime contracts
  • Payment timing and conditional payment provisions
  • Insurance and bonding requirements
  • Performance obligations and completion standards
  • Dispute resolution provisions

Subcontract agreements must align with upstream contractual obligations to avoid conflict.

Design-Build and Alternative Project Delivery

  • Design-build agreements
  • Construction management contracts
  • Integrated project delivery structures
  • Allocation of risk between design professionals and contractors

Alternative delivery models require thoughtful coordination among project stakeholders.

Bonding and Security Provisions

  • Performance and payment bond review
  • Completion guarantees
  • Surety coordination
  • Mechanic’s lien waiver provisions

Proper security arrangements protect both project owners and contractors.

Government Construction Contracts

  • Compliance with federal, state, and local procurement requirements
  • Review of contract clauses and flow-down provisions
  • Change directive and equitable adjustment language
  • Termination and default provisions

Public construction projects require familiarity with regulatory frameworks and procurement rules.

Risk Allocation and Dispute Prevention

  • Liquidated damages provisions
  • Force majeure and delay allocation
  • Insurance coordination and coverage review
  • Dispute resolution mechanisms such as mediation or arbitration

Thoughtful contract structure can significantly reduce the likelihood of costly disputes.

Who We Represent

Our Construction Contracts practice serves:

  • Real estate developers
  • Commercial property owners
  • General contractors and subcontractors
  • Design professionals and engineers
  • Construction lenders and investors
  • Government contractors
  • Infrastructure and public works participants

We tailor contract strategy to each party’s role and exposure in the project.

Industry Verticals Served

We draft and negotiate construction contracts across multiple verticals within the construction industry including:

  • Commercial real estate development
  • Retail and hospitality projects
  • Industrial and logistics facilities
  • Healthcare and institutional construction
  • Infrastructure and public works
  • Mixed-use and multi-family development
  • Government and defense projects

Industry knowledge allows us to align contract structure with business realities and market understanding.

Construction Contracts FAQs

What are the most important provisions in a construction contract?

Key provisions typically include scope of work, payment terms, indemnification, insurance requirements, change order procedures, dispute resolution, and allocation of delay or risk.

What is a guaranteed maximum price (GMP) contract?

A GMP contract sets a maximum price the owner will pay for a project, with cost savings sometimes shared between the parties. Clear definitions of allowable costs and change orders are critical.

What are “flow-down” provisions?

Flow-down provisions incorporate obligations from the prime contract into subcontracts, ensuring that subcontractors comply with the same requirements imposed on the general contractor.

Why is legal review important before signing a construction contract?

Construction contracts allocate financial risk, define liability, and establish dispute resolution procedures. Legal review helps prevent ambiguity that could lead to delays, payment disputes, or litigation.

Can construction disputes be prevented through contract drafting?

While disputes cannot always be avoided, clear drafting, defined change procedures, and proper risk allocation significantly reduce the likelihood and impact of conflicts.