The AEC industry: How to Contract Better and Avoid Delays

Construction contracts

The AEC industry is a notoriously difficult one to navigate. 

Research by Deltek’s discovered that 66% of AEC firms fail to complete one-quarter of their projects on time leading to significant financial losses.  

What’s fascinating about this discovery is that most project delays are not caused by technical issues, but by budget overruns, problems with subcontractors, and unclear objectives.  

It is vital for all parties involved to be clear on what their contractual commitment is if all project deliverables are to be achieved in a timely and efficient manner. 

In this post, we’ll discuss why contractual commitment is important. 

The Importance of Contractual Commitment in the AEC Industry

Contractual commitment is crucial as it entails planning for the future, maximizing the agreement’s benefits, and managing risks. It helps to achieve;

  1. Accountability

Accountability strengthens project ownership, builds trust, and increases the chances of a project being successful.

By holding everyone accountable for their actions, blame games can be avoided.

One can foster accountability in their contract by incorporating a clause that clearly defines each party’s responsibilities. 

 The accountability clause could also factor in quality control needs to avoid future problems. 

Contractual commitment means each party understands what they are entering into, agrees to the requirements, and receives a fair share without discrimination.

  1. Build strong business relationships

Contractual commitment binds parties together. 

It differentiates a good contractor from a bad one. Without a contract, it would be hard, if not impossible, for either party to hold their end of the bargain. 

Contracts require that the parties honor their promises, whether they are made verbally over dinner or via email.

This helps to build trust in the long run. 

  1. Timely completion of projects 

A contractual commitment defines the agreement about when the work will be completed. 

This is necessary to ensure each party gets value for their money and time. 

For this to be achieved, parties must set the time and budget of the project before it begins. 

A clear timeline states the start date and finish dates of the project. It strengthens commitment; a penalty can be added for late delivery. 

A contract review tool like BlackBoiler can help to back-track project delivery timelines against what was set. 

  1. Peaceful dispute resolution

Disputes are inevitable, but a clearly outlined contract can help to protect both parties through a predetermined method of dispute resolution. 

Additionally, with a dispute resolution clause, if either of the parties accuses the other of violation, contract review software can show what had been agreed on. In cases of violations, the contract may impose penalties.

Lastly, a dispute resolution clause reduces the time and money spent resolving issues and further strengthens the business relationship. 

 Tracking Changes in the Contract

Staying on top of every change, comment, or edit made in a written contract is crucial. Failure to stay up to date on contract terms can make one susceptible to exploitation and dishonest behavior from the other party. 

So to avoid such, be in the know with contract software that notifies one whenever changes are made in the contract. 

Contract automation software like BlackBoiler provides further information about the changes, such as why they were necessary, and one can act if needed. 


Contractual commitment is the cornerstone of the AEC industry. 

It helps to maintain healthy working relationships by clearly defining what is expected of each party.

Before beginning any project, the parties involved should ensure they have a written contract. With contract automation software , you can simplify and speed up the process of creating and reviewing contracts and get started on your construction project as soon as possible.

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