Every construction project carries its own risks, some visible from the start and others buried in the fine print. Your contract may not spell out who pays for delays, or your payment terms may depend on contingencies outside your control. These gaps do more than create uncertainty; they decide who absorbs the impact when complications inevitably arise.
In an industry where problems are expected, the real issue is whether your agreements protect you when they do. Without clear, balanced terms, rising costs, schedule overruns, or disputes can leave you exposed at the exact moment protection matters most.
We approach construction contracts with the expectation that projects rarely go exactly as planned. We draft and negotiate agreements for owners, developers, contractors, and subcontractors across Chicago with a focus on risk allocation, not boilerplate language. Our work centers on the provisions that actually control outcomes when schedules slip, costs increase, or disputes arise, so our clients are positioned to protect their leverage, their payment rights, and their projects from the start.
Types of Construction Contracts We Handle
We work with a wide range of construction and design agreements, including:
Owner Agreements:
- Owner-Contractor Agreements
- Owner-Architect Agreements
- Construction Management Agreements (at-risk and advisory)
Contractor and Subcontractor Agreements:
- Prime Contract and Subcontract Agreements
- Master Subcontract Agreements
- Purchase Orders and Supplier Agreements
Design Professional Agreements:
- Architect and Engineer Agreements
- Design Subconsultant Agreements
- Joint Venture Agreements
Supporting Project Documents:
- General Conditions and Supplementary Conditions
- Pre-Construction Services Agreements
- Change Order Templates
We work on construction contracts with all pricing models, including lump sum, time and material (T&M), cost-plus, guaranteed maximum price (GMP), etc.
Whether you're an owner negotiating with a general contractor, a GC establishing subcontract terms, or a subcontractor reviewing a prime contract, the goal is the same: make sure the contract reflects the actual deal and allocates risk to the party who can manage it.
Most Construction Contracts Are Insufficient
Construction contracts fail most often not because of drafting errors, but because critical risks were never clearly allocated, or were allocated without considering how the work will actually be performed.
For property owners and developers, this often means:
- Unclear scope definitions that lead to change order disputes
- Payment terms that don't align with draw schedules or lender requirements
- Indemnity provisions that create gaps in coverage
- Dispute resolution clauses that favor the other side
For contractors and subcontractors, common issues include:
- Pay-when-paid or pay-if-paid clauses that shift owner payment risk downstream
- Retainage terms that exceed statutory limits or lack clear release triggers
- Overly broad indemnity that exceeds insurance coverage
- No protection for delays caused by the owner or other trades
We work through these provisions before you sign, not after a construction dispute develops.
Project Delivery Methods and Risk Allocation
How a project is structured affects everything: who controls the work, who bears design risk, and what happens when the schedule slips or costs increase.
We work with all major delivery methods, including:
Design-Bid-Build (DBB) - The traditional model with separate design and construction contracts. Clear roles and competitive bidding, but the contractor isn't involved during design, which can lead to constructability issues and change order disputes.
Design-Build (DB) - Single-point responsibility that can speed up timelines by overlapping design and construction. Efficient, but owners trade some control for speed. Includes Progressive Design-Build variations.
Construction Manager at Risk (CMAR) - Early contractor involvement with a Guaranteed Maximum Price (GMP). Provides cost certainty and real-time feedback during design, but places significant responsibility on the CM to manage risk.
Construction Management Multi-Prime (CMMP) - Owner contracts directly with multiple trade contractors. Maximum control and transparency, but coordination risk shifts to the owner. Requires construction sophistication.
Public-Private Partnerships (P3) - Government and private entities collaborate on large infrastructure, transportation, or public projects. Involves private financing and often long-term operation, with unique compliance and payment issues.
Integrated Project Delivery (IPD) - Multi-party agreement with shared risk and reward. Built on collaboration and aligned incentives, but requires high trust and early commitment from all parties.
Each delivery method shifts risk differently. Our role is to help you understand those tradeoffs and make sure your contract reflects who actually controls decisions, schedule, and cost when things don't go as planned.
For more detail on how delivery structures affect risk and liability, see our guide to construction project delivery methods.
Standard Forms vs. Custom Agreements
We frequently work with industry-standard forms like AIA agreements, but we don't assume a template fits just because it's widely used. Many projects in Chicago and throughout Illinois require significant modifications, and some require entirely custom agreements.
Standard forms are a starting point, not a final answer. The question isn't whether to use an AIA form or draft from scratch. The question is whether the contract, whatever its origin, actually addresses the risks specific to your project, your role, and your exposure.
We also provide contract review and risk assessment for clients who have been presented with agreements and need to understand what they're actually signing before it's too late to negotiate.
Our Approach to Contract Negotiation
Effective negotiation isn't about winning every redline. It's about documenting the real business deal and making sure risk lands with the party best able to manage it.
We focus on the provisions that directly affect project performance: scope definition, payment terms, schedule risk, change management, indemnification, insurance alignment, and dispute resolution procedures such as mediation and arbitration.
We help you distinguish between essential protections and provisions that can be negotiated without creating unintended exposure. This often prevents the disputes we see in our construction disputes practice, where vague or one-sided contract language becomes the central issue once a project goes sideways.
Our goal isn't to create the most aggressive contract possible. It is to create one that's fair, enforceable, and reflects what both parties actually agreed to do.
When to Involve a Construction Contract Attorney
The best time to involve an attorney is before you sign, not after a dispute develops. Early review and negotiation can:
- Identify hidden risks in the other party's proposed agreement
- Ensure payment terms align with your cash flow and mechanics lien rights
- Confirm insurance requirements match your actual coverage
- Clarify what happens when schedules slip or costs increase
- Set clear procedures for change orders and dispute resolution
Whether you're an owner finalizing an agreement with your contractor, a general contractor negotiating subcontracts, or a subcontractor reviewing a prime contract, the provisions you negotiate now determine your leverage later.
Common Questions About Construction Contracts
When should I hire an attorney to review or draft a construction contract?
You should hire an attorney before signing any construction contract, especially for large or complex projects. Early involvement allows time to negotiate favorable terms, identify problematic provisions, and draft clear language that prevents disputes. Waiting until after a dispute arises is far more expensive than getting the contract right from the start.
What if the other party wants to use their standard contract?
Standard contracts are almost always written to favor the party providing them. You should have an attorney review any standard contract before signing, even if the other party says "everyone uses this" or "it's industry standard." Many standard contracts contain one-sided provisions that shift risk, limit liability, or waive important rights. Negotiating changes is normal and expected in construction contracting.
What happens if I start work without a signed contract?
Starting work without a signed contract creates significant legal and practical risks. Disputes over scope, pricing, payment terms, and responsibilities become much harder to resolve without clear written terms. You may still have legal claims based on verbal agreements or implied contracts, but proving your case becomes more difficult and expensive. Always get contracts signed before work begins.
Do I need different contracts for different types of construction projects?
Yes. Contracts should be tailored to the specific project type, delivery method, and parties involved. A residential remodel requires different terms than a commercial buildout. Design-Build projects require different contract structures than Design-Bid-Build. Using the wrong contract type for your project creates confusion, increases risk, and often leads to disputes over who's responsible for what.
What contract provisions should I pay closest attention to?
The provisions that most often lead to disputes involve payment terms, change order procedures, delay and schedule provisions, warranty and defect responsibilities, and dispute resolution requirements. Understanding these key provisions before signing can help you avoid costly problems later. For a detailed breakdown of critical contract provisions, see our blog post: Key Contract Provisions Every Owner/Contractor Should Review Before Signing.
For more information about construction contracts, see our Construction Contract FAQs.
Does Your Construction Contract Protect Your Build?
Construction contract law in Illinois involves state-specific statutes on mechanics liens, retainage, indemnification, and contractor licensing. We focus our practice on Illinois construction law and work with clients throughout Chicago and statewide on contract drafting, negotiation, and dispute prevention.
If you're negotiating or revising a construction agreement, or if you've been presented with a contract and need to understand what you're signing, contact us to discuss how we can help.
Schedule a Free ConsultationWhat to Expect During Your Consultation
During your free phone consultation, we'll discuss your contract situation and help you understand your options. Whether you're negotiating a new agreement, reviewing a contract you've been presented with, or need to revise existing terms, we'll walk through the key issues and explain how we can help.