1. Construction Contract Negotiation
American Bar Association
Forum on the Construction Industry 2013

2. Parties on Construction Project

3. Basic Elements of a Construction Contract
Essential Terms of Contract
Price
Scope of Work
Duration
Typical Payment Methods
Lump Sum (low bidder)
Cost of Work Plus a Fee (Time and Materials)
Cost of Work Plus a Fee with a Guaranteed Maximum Price (GMP)

4. Sources of Law Contract Terms Common Law
Prior decisions, e.g. Spearin v US
Statutes and Regulations
Dispute Resolution
Negotiation/settlement
Mediation
Litigation (Court System)/Arbitration

5. Negotiation Tips Use your arguments Start low/high
Take breaks/talk with your team
Explain Position

6. Negotiation Module
$100,000 Construction claim from Subcontractor to General Contractor to Owner
Three-party negotiation
Read common fact pattern and contracts
Read your party’s sheet
Meet with your teammate(s) (15 minutes)
Meet with other parties to negotiate claim (30-45 minutes)
Sign paper with settlement terms