Diving into the world of construction contract management, I’m thrilled to sit down with Luca Calarailli, a seasoned expert in construction, design, and architecture. With a career dedicated to navigating the complexities of building projects and a keen interest in leveraging technology to innovate within the industry, Luca has seen firsthand the pitfalls and triumphs of contract drafting. Today, we’ll explore the critical mistakes often made in construction contracts, the importance of clarity in project scopes and timelines, and how modern challenges like pandemics are reshaping contractual agreements. Our conversation aims to uncover actionable insights for anyone involved in construction projects, from avoiding disputes to managing unexpected changes.
Can you explain why construction disputes seem to be increasing in 2025, and what’s driving this trend?
I think the rise in disputes in 2025 is tied to a combination of economic pressures and the growing complexity of projects. Inflation and supply chain disruptions are creating cost overruns, while tighter deadlines push teams to their limits. Add to that the fact that many projects now involve multiple stakeholders with differing priorities, and misunderstandings are almost inevitable. I’ve noticed that when communication breaks down or expectations aren’t aligned from the start, small issues quickly snowball into full-blown conflicts.
What are some of the most frequent issues you’ve encountered that spark these disputes?
In my experience, the big culprits are usually payment disagreements, unclear timelines, and changes that aren’t properly documented. For instance, if a contractor expects payment upon a certain milestone but the owner has a different definition of ‘complete,’ you’re already on shaky ground. Similarly, unexpected changes in design or materials often lead to arguments about who foots the bill. Quality of work is another sticking point—when standards aren’t explicitly defined, everyone has their own interpretation, and that’s a recipe for trouble.
How does a well-crafted contract act as a tool to prevent or minimize these conflicts?
A solid contract is like a roadmap—it lays out the journey and helps everyone stay on course. When it’s written with clear terms on payment schedules, change management, and dispute resolution, there’s less room for misinterpretation. I’ve seen contracts save projects by providing a framework for handling the unexpected, like delays or cost increases. It’s not just about legal protection; it’s about setting expectations upfront so all parties know what to do when things go off track. A good contract can turn a potential lawsuit into a productive conversation.
Why is having a clear process for managing changes during a construction project so crucial?
Changes are inevitable in construction—whether it’s a client rethinking a design or a supplier running out of materials. Without a defined process for requesting, approving, and documenting those changes, you end up with chaos. I’ve seen projects where verbal agreements on changes led to massive disputes because no one could agree on what was said. A clear process ensures everyone’s on the same page, tracks additional costs or time, and keeps the project moving forward without derailing into arguments.
How have recent global events influenced the need to update Force Majeure clauses in contracts?
Events like the pandemic and ongoing supply chain issues have been a wake-up call. Traditional Force Majeure clauses used to focus on natural disasters like floods, which, while serious, are less frequent. Now, we’re dealing with widespread disruptions that can halt projects for months. I’ve worked on contracts where outdated clauses left parties scrambling to figure out who bears the loss during a lockdown or a material shortage. Updating these clauses to cover modern risks is essential to protect everyone involved and avoid drawn-out legal battles.
Why does a poorly defined project scope so often lead to disagreements, and how can this be avoided?
A vague scope is like building without a blueprint—everyone has a different picture in their head. If the contract just says something generic like ‘install lighting,’ the contractor might assume basic fixtures while the owner expects custom designs. That mismatch leads to disputes over cost, time, and quality. The key is to get granular—specify materials, quantities, and standards. I always advise including drawings or specs as part of the contract. It takes extra effort upfront, but it saves a lot of headaches later.
How important are detailed timelines and deadlines in preventing contract disputes?
Timelines are everything in construction. If deadlines aren’t clearly defined, or if there’s no agreement on what ‘completion’ looks like, you’re setting the stage for conflict. I’ve been on projects where delays happened because no one agreed on who’s responsible for certain tasks by a specific date. Contracts need to spell out milestones, consequences for delays, and how to handle extensions. It’s about accountability—when everyone knows the schedule and their role in it, there’s less finger-pointing when things slip.
What are the essential payment details that should be outlined in a construction contract to avoid issues?
Payment terms need to be crystal clear—how much, when, and under what conditions. I’ve seen disputes erupt because a contract didn’t specify if payment is tied to milestones or a fixed schedule, or what happens if work is deemed subpar. It’s also critical to outline a process for withholding payment if there are legitimate issues, so it’s not seen as arbitrary. Without these details, you risk cash flow problems for contractors and frustration for owners, which can stall a project fast.
Why is it a mistake to rely on generic, one-size-fits-all contracts for construction projects?
Every project has its own quirks—different timelines, materials, stakeholders, you name it. A generic contract might seem like a time-saver, but it’s often too broad to address the specifics of your job. I’ve seen these templates fail because they don’t account for unique risks or local regulations. Tailoring a contract to the project might take more effort, but it closes gaps that could lead to misunderstandings. It’s like wearing a custom suit versus an off-the-rack one—it just fits better.
What’s your forecast for the future of construction contracts, especially with evolving challenges like technology and global disruptions?
I see construction contracts becoming more dynamic and tech-driven in the coming years. With tools like digital project management platforms, we’ll likely see contracts integrated with real-time data for tracking changes and progress, reducing disputes through transparency. At the same time, global disruptions will push for more robust risk-sharing clauses, covering everything from climate impacts to geopolitical issues. My forecast is that contracts will need to be living documents, adaptable to change, and backed by tech to keep everyone aligned in an increasingly complex industry.
