Part 2: Allocation of Construction Risks Through Contract Clauses

In part two of an article published on November 15, 2023, in Colorado Real Estate Journal, J. David Arkell outlines four additional critical subcontract clauses for risk allocation between a general contractor and subcontractor. 

“Subcontracts should require subcontractors to conduct a site investigation, assess site conditions, and report concerns to the general contractor, before signing the contract or commencing work," Arkell explains.

He further discusses the differing site conditions at construction sites that were unknown when the subcontract was executed, the incorporation by reference concept and notice requirements in construction contracts. 

“Construction subcontracts typically require that the subcontractor provide written notice to the contractor of circumstances that may lead to a claim for additional money or time. The clause should be very specific about the timing and content of the notice.”

Read the full article in Colorado Real Estate Journal