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Colgan Law Firm LLC
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Contracts as tools to limit costs

A cost overrun could make a construction project in Kansas less profitable. Therefore, it is essential that the involved parties take steps to control costs. This may be done through language in the construction contract itself. For example, the contract could state that multiple bids be sought in an effort to obtain lower prices through competition.

It can be a good idea to add a clause defining what is considered to be unallowable labor. This is important because any action that is not allowed by the contract would need to be approved before it happens. Ultimately, this clause can help to avoid unexpected overruns or other disputes during a project. There is a good chance that a change order will occur at some point during a construction project. Therefore, there should be a system of reporting the changes and verifying the costs associated with them.

Contractors should also be asked to include a clause in the contract allowing developers or owners to audit records as necessary. Having this clause makes it easier to determine that the project costs are in line with what the parties agreed to. Without such a clause, it may be difficult or impossible to get such information even if an owner or developer asks for it from the contractor.

If a breach of contract occurs during a construction project, there could be many ways to resolve it. For instance, it may be possible to simply alter the deal to clarify language that may have been vague to one or more parties. Contracts could also be reviewed by a mediator or other professional to determine if either party to a dispute has a valid legal argument. An attorney may be helpful during a construction contract dispute.

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