A Basic Checklist of Documents to Maintain from a Construction Project, Part 1 of 2

By Suzette S. Doody

Maintaining complete business records is critical to prove or disprove a construction claim. More often than not, parties do not begin to record and document a project until after problems arise, but it is critical to establish a written record of all fundamental agreements at the outset of any construction project. You may be asking yourself, “Aren’t we busy enough without having to worry about adequately documenting a project’s construction in anticipation of a lawsuit for construction related issues?” However, after a claim presents itself is not the time to try and gather the necessary construction project documentation to support a claim or defense. Written agreements and documentation will outweigh any oral evidence and alleged verbal agreements. A lack of complete business records can result in additional costs in proving or disproving a construction claim.

Before any construction project is commenced, however, a contractor should implement a project documentation policy. The following checklist includes the basic project documentation commonly necessary to assist with either proving or disproving a construction claim. The amount of documentation that will be maintained for each project is dependent on the size and type of a project. Bigger projects will obviously require more care in both the preparation and maintenance of project documents, while it is not economically feasible on smaller scale projects to retain such extensive documentation. Throughout the course of a project, it is crucial to maintain the following documents:

1. Construction Contract(s)
The construction contract(s) provide the framework by which the risks inherent in the construction process are allocated between the parties, i.e. each of the parties’ rights and obligations, proper notification of any claim, and what, if any, clauses limit a contractor’s ability to recover any costs created by the claim.

2. Bid Documents
Generally speaking, bid documents detail the scope of work performed and set forth the detailed specifications required under the contract. Bid documentation should include any takeoffs, pricing, subcontractor and supplier bids, overhead and profit mark-ups, and mark-ups for labor burdens.

3. Construction Schedule
In the event of a delay claim by an owner or developer, copies of all construction schedules are crucial. A claimant must prove three elements to prevail: that the delay was excusable, compensable and critical. Evaluation of a delay claim requires comparing the initial project schedule (which was the basis for the project bid) with the as-built schedules over the course of the project.

For more information contact sdoody@holmwright.com.