If You’re Performing Preconstruction Services, Be Sure to Set Performance and Payment Expectations Before the Work Begins

A contractor’s or design professional’s preconstruction services can be used to determine project feasibility and maximize project value. These services can range from design assist, cost estimating, and scheduling to logistics planning, material selections, and value engineering. They are performed before construction begins, with the goal of assisting clients to make informed decisions in the early design and development stages of the project.

When a contractor or design professional performs preconstruction services, risk and liability undoubtedly exist. Often, these services are performed without a clear understanding of the scope, anticipated fees, or payment structure. Sometimes, preconstruction services are even performed prior to signing off on an agreement. This can happen where owners, contractors, construction managers, and design professionals have pre-existing relationships and a positive work history. In these cases, those performing the work may believe that they will be compensated for their services under the forthcoming agreement, despite the parties not having yet executed the contract or defined the scope of services. For construction professionals performing preconstruction services, ensuring that any risk and liability, as well as payment terms, are agreed upon prior to performance can lead to an uninterrupted design process. Read more>