Quick question: how many people do you know who love signing contracts? Ten? Five? The answer is probably closer to one or zero, and the one is probably a lawyer.
Contracts are no fun.
Long, winding, repetitive, confusing, and jargon-filled are some of the words people commonly use to complain about contracts. Life experience and probably pop culture have made the general public wary of them.
However, this does not mean you should just scribble your signature whenever someone hands you a contract to sign. Since it is a legally binding agreement, you should make sure you read through the small print with a lawyer if necessary to ensure you’re protected all the way.
Why are Construction Contracts Important?
One place you need this kind of protection is in construction projects. Construction projects are what you would call ‘big projects’: they are complex, involve a lot of different people, and are deeply involved with the law.
With so many people and seemingly insignificant details involved, different interpretations of the instructions are common. And although these differences can easily be sorted out or even ignored, sometimes they have serious implications on the overall project. Implications that could leave you on the wrong side of the law, endangering people’s lives and ultimately losing lots of money.
Reduce Risk and Save Money with Construction Contracts
Here are more reasons why you need a written construction contract to help you manage your project:
Predetermined Conflict Resolution Strategies
Since construction is such a complex project as we have already mentioned, it is important to have ways of resolving conflicts before they happen. Think of it as some kind of specific law for a particular project.
These guidelines will stipulate who is obligated to do what, together with how they should make reparations for not fulfilling obligations. They also give guidelines on what should happen during a stalemate or when parties have different, strong opinions about important aspects of the project.
Without these and other measures, all parties in the construction will be subject to their emotions and the whims of others. These could lead to some parties opting out prematurely and not putting the goals of the collective before their own. In such a case, you would lose a lot of money if you did not have a good contract to protect you.
Decisions on How to Handle Unexpected Crises
Who will pay for damages caused by unexpected issues? What if the land you are building on has a geological problem neither party knew about? What if the area laws change mid-construction and negatively affect the construction?
A construction contract agreement will provide a guide for you to resolve these issues peacefully and will help avoid excessive losses for either side. In many ways, a good construction construct is like mutually beneficial insurance.
Now that we see how important a construction contract agreement is, we need to find a way to make sure that the contract serves you. Is there a way to make the construction contracting more palatable, time-saving, and secure? Yes, we have construction contract software.
But how exactly can software help us manage construction agreements? Can computers manage that kind of thing? And again, the answer is yes!
Review Construction Contracts With AI
Construction contract software uses a form of Artificial Intelligence (AI) known as Natural Language Processing (NLP). Natural Language Processing, just as the name suggests, uses artificial intelligence to process language. In the case of construction contract software, the AI processes written language in the same way the brain would.
Construction contract software uses NLP and Machine Learning technology to recognize certain phrases, concepts, tones, words, and messaging in contracts. Therefore the technology can identify any discrepancies, inaccuracies, and imbalances. For example, is risk management balanced? Are there any statements that are ambiguous and may bring trouble later?
Amazing, isn’t it? But if you still have some doubt about whether you should trust construction contract software, then here are some reasons that should help you make up your mind.
Automate your Construction Contracts
Reviewing contracts is a delicate process. A contract will only protect you if it has clauses that are clear, meaningful, and concise. It also needs to include everything that you need it to. All this is done in the process of reviewing, which is easily done by construction contract review software.
Here are a few examples of what the software will do:
- Identify ambiguous and incriminating clauses
- Create a list of potential risks with the wording and terms of the contract
- Compare and contrast your contract to other similar contracts to check for improvements
- Review the accuracy of the legal terms used in the contract agreement
Construction contract agreements will help you ensure that your contract avoids unnecessary mistakes that could make it harmful instead of helpful to you.
AI Contract Review and Negotiation
The negotiation part is one of the most stressful and expensive parts of agreeing on your contract. Going back and forth, hefty legal fees, revaluation of procurement items, and even local land laws: negotiation is one of the stages where you are bound to make the most mistakes.
However, with the help of construction contract software, this process is simplified and even made more accurate by the use of specialized AI.
Finally, with all the help in construction contract review and negotiation, construction contract software allows you to reduce the time to an agreement. You do not need to spend several months going back and forth with contractors. This takes the burden of prolonged stress and anxiety of scary contractual errors off your shoulders for good.
Get Construction AI Contract Review Software Today!
Can computers be as smart as humans? There is no straightforward answer to this question, but what we do know for sure is that they can help us stay logical and find errors more efficiently. And with AI and machine language capabilities, they can also read and understand tone, nuance, and hidden messages.
So, if we knew how to work alongside computers, we would increase our output, avoid risk and as result save a lot of money. This is what construction software hopes to achieve for you with your construction contracts. Remove all the hustle from your contract review process with our highly effective construction contract review software. Learn how BlackBoiler can review and redline your construction contracts, request a demo today!