Print Page   |   Contact Us   |   Sign In   |   Become a Member
Search
Mr. Ethics
Blog Home All Blogs
Ever find yourself in a sticky ethical situation? Mr. Ethics has your back! Mr. Ethics is here to take your questions and give you his input on how to best deal with your situation. Have a question for Mr. Ethics? Send it to info@professionalconstructor.org and he may respond to you here on the Mr. Ethics Blog.

 

Search all posts for:   

 

Top tags: Mr. Ethics  Bids  Change Orders  Contracts  Ethics  Legal  AIC Contracts  Bid Sheet  Bidding Requirements  Bonds  Change Order  Code of Ethics  Construction  Design  Disputes  EIT  Errors and Omissions  Government  Inspections  July 2015  Lawsuit  Liability  LLC  OHSA  Owners  PE  Planning  Project Close Out  Public Safety  Punchlist 

Transparency in Contract Revisions

Posted By Mr. Ethics, Thursday, March 20, 2014
Updated: Wednesday, April 23, 2014

Dear Mr. Ethics,


We use AIA contract documents with all our owners and subs.  We always modify the documents to get better terms for us.  For example, we insert a “paid when paid” clause; broader indemnification; and a lien waiver provision.  We never let the owner or sub know we modified the document.  Now one of our younger employees has voiced ethical concerns about not letting the other party know about the changes we make.  What is your opinion?
 
Very truly yours, Business is Business
 



Dear Business,
 
There exists an obligation that a party entering into an agreement knows the terms and conditions of the agreement.  There is no obligation for a party to tell the other party about the terms and conditions.  Therefore, I do not think you have acted improperly in not pointing out where you have changed the agreement.   However, ethics suggests that it you want an open and transparent relationship with the party you are contracting with, and then you should advise them of the changes you have made to the standard AIA agreement.  Disclosure may not be required but I think it is the best course of action.
 
Regards, Mr. Ethics


Tags:  AIC Contracts  Mr. Ethics 

Share |
PermalinkComments (0)
 
more Calendar

8/31/2017
Removing Friction: The Construction Operating System

9/10/2017 » 9/13/2017
Constructor Conference

Featured Members
Online Surveys

 

  

  

 

Membership Management Software Powered by YourMembership  ::  Legal