WASHINGTON - A diverse group of construction associations, representing owners, design and construction professionals, and insurance and surety companies continue to actively discuss the development and promotion of standard construction contracts. The associations are uniting around the idea that the industry is better served by balanced contracts that are actively supported by all.

"All parties in a construction project deserve to work under a fair contract - one that they have confidence in because each of their respective associations had a true seat at the drafting table," said Stephen Sandherr, CEO of the Associated General Contractors of America (AGC).

The construction industry groups have been in discussions for a year-and-a-half regarding the content of construction contracts and a business model to adequately support this effort. The groups recently decided to renew their commitment to work collaboratively on producing and promoting consensus contracts.

"The drafting process has been the best committee approach that I have ever participated in," said Bob Bourg, National Association of State Facilities Administrators (NASFA).

"I look forward to continuing this process to conclusion and providing contracts that will allow users to focus more time and energy on contract results and successful outcomes, rather than battling over biased contract terms."

"It is in the enlightened self-interest of all parties - owners, design professionals, and general and subcontractors - to draft fair contracts," said Greg Sizemore, executive VP of Construction Users Roundtable (CURT).

"At the end of the day we all have the same interest: to build an outstanding project that benefits everyone," said Jack Mumma, president of Construction Owners Association of America (COAA).

The inclusive group hopes to reach out to organizations that already create contract documents as well as other associations that may want to join the effort.

Publication date: 06/26/2006