Contact Clauses That Can Cause More Lawsuits Than They Prevent
Posted March 01, 2026 in Uncategorized
In this blog:
Construction contracts often face disputes arising from ambiguous terms and sloppy clauses. Indemnification language that leaves fault wide open, fuzzy performance standards, and half-baked termination provisions send owners and contractors to court again and again. Clear assignments of responsibility, specific performance benchmarks, and step-by-step termination procedures cut down on lawsuits and protect both the job and the relationships around it.
Some contracts read like they were written by a committee that never set foot on a jobsite. Then a schedule slips, a sub walks, or the work fails inspection, and everyone reaches for the same page and sees something different. That’s when the real money starts burning.
Most construction disputes that end up in a Colorado courtroom trace back to the same hot spots: who gets paid, who stands behind the work, who carries the risk when something goes wrong, and how the parties can end the relationship when it stops working. If you are in need of legal assistance with a contract related issue, contact our Colorado Springs, CO commercial contract lawyer today.
Indemnification Clauses That Invite a Blame Game
Indemnification should answer one simple question: who pays when something goes wrong, and under what conditions. Many contracts leave that wide open, especially around performance failures.
Trouble shows up when indemnity language covers “any and all claims” without tying it to actual fault or performance. One side argues it covers nearly everything. The other argues it covers almost nothing. Good indemnity language should tie responsibility to specific conduct, specific parties, and specific types of loss, in plain words that match how risk actually flows on your projects.
Vague Performance Standards
Words like “industry standard,” “workmanlike,” or “high quality” sound fine in a pre-bid meeting. In a dispute, they often leave too much room for argument. One side says the work passes. The other says it fails. Both claim the contract.
Performance clauses work harder when they get specific. There should be measurable tolerances, reference-identified drawings and specifications, and clear timelines for correcting defects. If a superintendent cannot point to a line in the contract and explain it to a crew, the clause could invite a future lawsuit.
Termination Provisions That Light the Fuse
Termination rights are an important escape route for projects. Poor drafting can turn a bad situation into open warfare. Problems often spike when the contract says a party may terminate for “cause” without defining that word, or when notice and cure steps sit in vague, one-line bullets.
A tighter provision may include spelling out examples of “cause,” requiring written notice that describes the problem, setting a specific cure period in days, and explaining what happens if the problem continues. The goal of that level of clarity is to encourage people to resolve issues before they reach termination.
Call When the Stakes Are Real
If your next project contract has a lot riding on it, you deserve language that reflects that reality. Volpe Law LLC works with owners, contractors, and trades who live with real risk on every job. Call 720-770-3457 to talk through your contracts before they become exhibits in someone else’s lawsuit.
Problematic Contract Clauses FAQ
What contract clauses in construction end up in court most often?
Indemnification provisions, performance standards, change order language, and termination clauses appear in disputes on a regular basis. These sections shift money, schedule, and responsibility, so unclear wording there tends to trigger claims and litigation.
How specific should performance standards be in a construction contract?
They should use measurable, project-specific details. Reference identified plans and specs, set tolerances where possible, and include concrete deadlines for completing and correcting work. The goal is for a foreman to read the clause and apply it on site without guesswork.
When should I ask a lawyer to review a construction contract?
Bring in a lawyer before you sign, especially when the project carries significant dollars, tight deadlines, or unusual risk. Target key sections, including scope, indemnity, insurance, schedule, change orders, and termination, to ensure the review focuses on the clauses most likely to spark a dispute.