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J. Norman Stark, Attorney
17000 St. Clair Avenue
Cleveland, Ohio 44110-2535

Telephone: (216) 531-5310
Fax: (888) 833-5860

Construction Contracts

Attorney Stark analyzes the preparation and implementation for new business, construction contracts and construction documents and claims coordination with Architects and Construction Engineers for Owners, General contractors, Subtrades and suppliers.

Typically the construction industry includes three parties that attorney Stark interfaces: an owner, a designer (architect or engineer), the builder (general contractor). Traditionally, there are two contracts between these parties as they work together to plan, design, and construct the project. The first contract is the owner-designer contract, which involves planning, design, and construction administration. The second contract is the owner-contractor contract, which involves construction. An indirect, third-party relationship exist between the designer and the contractor due to these two contracts.

An alternate construction contract replaces the two traditional contracts with three contracts: owner-designer, owner-construction project manager, and owner-builder. The construction project manager becomes an additional party engaged in the construction project to act as an advisor to the owner, to which they are contractually tied. The construction manager's role is to provide construction advice to the designer, on the owner's behalf, design advice to the constractor, again on the owner's behalf, and other advice as necessary.

Many construction projects – particularly government agencies have let out construction contracts which are known as Design-Build contracts. In this type of contract, the construction team is known as the design-builder. They are responsible for taking a concept developed by the owner, completing the detailed design, and then pending the owner's approval on the design, they can proceed with construction.

There are two main advantages to using a design-build construction contract. First, the construction team is motivated to work with the design team to develop a design with constructability in mind. In that way it is possible for the team to creatively find ways to reduce construction costs without reducing the function of the final product.

The other major advantage involves the schedule. Many construction projects are given out with extremely tight time frames. By letting out the construction contract as a design-build contract, the contractor is established, and early mobilization and construction activities are able to proceed concurrently with the design. Under a traditional construction contract, construction cannot begin until after the design is finished, the project is bid and awarded, and the team can mobilize. This type of contract can take months off the completion date of a construction project.