Good Contractor Poor Documents

Using the Right Sized Team for the Job

Sometimes engaging a gargantuan contractor for a stand-alone project doesn’t make sense commercially in terms of mobilization costs or economies of scale for a contractor and this can make the costs prohibitive.

Further, a smaller contractor may be familiar with the project in which the property is situated and therefore will be able to anticipate issues that will pop up that are not obvious from the construction and as-built drawings.

No Time for Perfect Documents

Small contractors are, if they are good, often very busy, committed to multiple projects and might not have the luxury of time to devote to word perfect typographical free documentation with their clients.

Balancing Desire for Perfection with Getting the Important Matters Right

Hughes Krupica assisted me take a pragmatic view on how to approach the fact my favoured contractor’s documents were lacking. They discussed with me my key objectives and the amount of risk I was and was not willing to take.

Hughes Krupica then drafted additional documents including an advance payment guarantee document to be issued by a Thai bank in Thai language on which I could rely, and further the performance bond provisions to make clear the distinctions between the guarantee re advance payment and that relating to performance.

A short form precedent agreement was adapted succinctly but with provisions that I would not have been able to produce myself.

Correct Message Sent to Contractor

I think that it is important to send a message to contractors that the employers are not naïve or unsupported with regards to the construction and project management process.

A good start to delivering that message is to ensure competent legal counsel amend or create new documents that are practical and useable in the construction industry.