Navigating a Construction Agreement

New Construction…No Problem?

New homes have been popping up all over the area.  Many times unsuspecting buyers/owners are entering into construction agreements without attorney review or representation.  Often these construction agreements are lacking key terms that protect a buyer’s/owner’s investment.  Ultimately every construction agreement is different, however the fundamentals are the same – payment obligations, draw schedules, timing, warranties, lien releases, indemnities and hold harmless, insurance, punch list items, default provisions, etc.  Below are five of the most common pitfalls we find:


  1. Buyer/Owner payment obligations do not line up with the work performed/completed;
  2. Limited warranties;
  3. Failure to properly address lien releases prior to a payment being made;
  4. Vague construction time frames; and
  5. Lack of reasonable inspection provisions.


Prior to executing a construction agreement please consult with your real estate attorney to make sure your interests are protected to avoid future pitfalls.


Berlin-Patten, PLLC


This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

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