Many Construction subcontracts and purchase orders are not properly crafted to end well. Many subcontracts have been written to only be performed by the most humble subcontractors. Many purchase orders are simply vendor quotes signed by general contractors, placing the general contractor at the mercy of the terms of the vendor.
Most subcontract or purchase order include these basic elements:
- What is to be provided and/or installed
- The negotiated price
The following important date is often missing from construction contracts:
- What happens if milestones are not met
- What happens if the quality is not delivered as specified
- What happens if delivers are late
- What assurances are to be given by the subcontractor or supplier to ensure deliver and performance criteria will be met
- Who owns the float on the construction schedule