As a contractor in the construction industry, you know that signing a solid contract is important to define the parameters of your construction project and make sure you receive payment for your work. However, a contract for a construction job might require reviews and even updates from time to time.
Construction companies should not assume that their contracts should always remain as they are. Construction Exec explains that a number of factors can actually make a construction contract outdated in some of its provisions, perhaps even ones that would otherwise shield you from liability.
Changes in law
Your construction contract should conform to the standards of law in order to be enforceable. The problem is that if your construction project goes on for a long period of time, it is possible that changes in law may render parts of your contract obsolete. Congress or the Florida legislature could pass new laws that affect the construction industry. A state or federal court could also hand down a ruling that invalidates provisions in your contract.
Changes in the industry
A construction contract should also reflect the current standards of the construction industry. Given that the industry is continuing to modernize and evolve, it is possible that certain standards described in your contract are no longer valid. Additionally, economic factors such as supply chain delays and rising material costs may necessitate revisiting your contract if they interfere with the completion of the project.
Changes in named parties
Your contract may name certain parties that no longer exist. For example, you might not want to go to court to resolve a dispute. Your contract may name a venue to arbitrate your dispute. However, if the organization is unavailable or ceases to operate, your dispute may end up in court anyway unless your contract names a backup organization.
Consequences of outdated contracts
A contract that becomes obsolete may cause significant problems. You may find that your contract no longer protects you in certain areas. Additionally, outdated provisions may increase your liability, which means another party might sue in spite of the original intent of the contract. Conducting reviews and revisions of your contract may be necessary to prevent these outcomes.