Choosing how the project is delivered
Owners usually choose among a traditional arrangement, in which the design is finished and then bid to a general contractor, design-build, in which one party handles both, and construction management models, in which a manager coordinates the trades and may commit to a maximum price. Each places design and coordination risk somewhere different. Pricing can be a stipulated sum, cost plus a fee, or cost plus a fee with a guaranteed maximum price, and the audit and contingency terms matter as much as the headline number. Industry forms such as those published by the AIA or ConsensusDocs are common starting points, but owners and lenders typically revise them substantially.
Risk terms owners should read closely
New York's scaffold law places unusual responsibility on owners and contractors for certain gravity-related injuries to workers, which is why insurance requirements, additional insured status, and indemnity terms deserve close attention on any building project. State law also limits how far a construction contract can shift responsibility for a party's own negligence onto someone else, so indemnity clauses should be drafted to fit within those limits. Clauses barring delay damages are often enforced, though with exceptions, and the contract's notice requirements for claims are frequently where disputes are decided. Your lender will usually have its own requirements, such as consent rights over change orders and a collateral assignment of the contract.
Keeping the job paid and documented
New York's Lien Law protects contractors and suppliers, and money paid for the improvement is generally treated as trust funds that must go toward paying for the work. Owners can reduce lien surprises by requiring lien waivers and payment documentation with each requisition and by tracking retainage carefully. Change orders should be written and signed before the work proceeds, because disputes over extra work often turn on whether the contract's change procedure was followed. We review the draft with your project team, your architect's input, and your lender's requirements in mind. The first meeting usually sets the delivery model, the pricing approach, and the handful of clauses most worth negotiating.
