Killer Clauses in Construction Subcontracts: Allocating Risk with Subcontractor Agreements

As last week’s newsletter mentioned, 2016 is expected to bring continued growth to the construction industry. This growth also brings increased risk. And, it is through the contract and subcontract documents that project participants will try to minimize and shift that risk. As general contractors take on more projects, they will likely find themselves working with new and unfamiliar subcontractors. Whether parties are considering working with a new partner or simply re-evaluating existing relationships with long time partners, the parties should consider how to best allocate the risks associated with each project. What follows are some of the key provisions contractors and subcontractors should understand when evaluating the risks allocated through subcontract agreements.

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