01-30_GENERALS_Fall25_PT - Flipbook - Page 26
ADVOCACY
PRE-BID CONTRACT PITFALLS
Continuing with our theme in Stage 1: Part 1 Bidding Smartly Not Just Quickly
By LEONARD FINEGOLD, CHAIR, CONSTRUCTION LAW GROUP CAMBRIDGE LLP
WITH THE GRATEFUL ASSISTANCE FROM POONEH SOORESRAFIL
S
ITE CONDITIONS: KNOWN, UNKNOWN &
SHOULD HAVE KNOWN
The tender documents and the
subsequent contract typically
shift the financial risk of known,
unknown and should have known
site conditions to the general contractor.
As such, it is essential to attend a pre-bid
site inspection to properly assess known
and visibly apparent site conditions in
order to determine any complexities and/
or physical restrictions and/or obstacles
in performing the work. Failure to attend
a pre-bid site inspection - particularly if it
is a requirement in the tender documents
- may be fatal to any claim for additional
compensation arising from site conditions that were apparent and should have
been known, if the pre-bid site inspection
had taken place.
For example, be mindful of site access
restrictions, including site trailer and
material lay down area availability; other
site restrictions imposed by the owner;
Legal
INTRODUCTION TO
THE FOUR-PART SERIES
This article is the second in
a newsletter series aimed at
helping general contractors
navigate the legal and strategic
challenges at each stage of a
construction project.
26 the generals • FALL 2025
STAGE 1:
PART 1 - Bidding Smartly
PART 2 - Prebid Contract Pitfalls
This part focuses on navigating the prebid rollercoaster ride of striving to be
the lowest bidder, while attempting to
manage financial risks.
STAGE 2:
PART 3 - Contract A and
Contract B Untangled:
STAGE 3:
PART 4 - Post Contract A and
Contract B Performance Pitfalls:
This part will explore the legal and
financial framework prior to the
creation of Contract A, including
assessing financial risks, accurately
interpreting the drawings,
specifications, and scope of work
to ensure a carefully prepared and
financially rewarding bid.
This part will guide you through
post-Contract A (post-tender)
negotiations, highlighting the legal
obligations of good faith in the
performance of Contract B, and the
fine line between clarifications and
material changes.
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