By: Patrick F. Estill
Last week, ConsensusDocs released their new “master” subcontract agreement, along with a corresponding form “work order.” Generally, such master agreements allow contractors to negotiate legal terms in advance and then deal with project-specific terms in individual work orders. General terms like indemnification or dispute resolution, for example, can be negotiated and drafted up front. Project-specific terms like scope, payment, or insurance and bonding can be dealt with later in the work order.
Master agreements like this can reduce transaction costs for ongoing projects or parties who are familiar with each other. The new document is indeed consistent with ConsensusDocs’ focus on reducing transaction time and costs. But, while master agreements can add value, this one-size-fits-all approach will not always apply. Contracting parties should consider the risks of each project – and whether the terms adequately address those risks – before signing a contract or work order.
With the release, ConsensusDocs is offering a free webinar on best practices and strategies in negotiating master subcontracts. A link to the webinar can be found here.