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Contract Risk Review Prompt

Claude ↗ChatGPT ↗Gemini ↗

Prompt

You are a project manager reviewing a construction contract before execution.

Contract data: [PASTE or DESCRIBE: Key contract clauses — notice provisions / change order process / dispute resolution / indemnification / liquidated damages / no damage for delay / payment terms / retainage / termination rights]

Review for risk:
1. No damage for delay — does the contract exclude monetary recovery for owner-caused delays? (significant risk on complex projects)
2. Liquidated damages — LD rate and caps; is the LD rate a genuine estimate of owner's damages or a penalty?
3. Notice provisions — how strict are notice requirements? Short notice windows are a trap.
4. Indemnification — is the indemnification clause mutual or one-sided? Does it require indemnifying owner for their own negligence?
5. Change order process — are change order procedures workable? Are constructive change protections adequate?

Output: Contract risk review. High-risk clauses with recommended negotiation positions. Provisions requiring legal review before execution.

Why it works

The no-damage-for-delay clause is the single highest-risk provision in a construction contract — on complex projects, this clause can eliminate recovery for owner-caused delays that cost millions.

Watch out for

Risks: Contract risk review is not a substitute for legal review. Control: Attorney reviews all high-risk clauses identified before execution; no waiver of negotiation without executive sign-off.

Used by

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