Sample report

Demo subcontract risk report

Overall risk score

100/ 100
Severe

Severe risk

Executive summary

Copper Ridge TI - Demo Review

Recommended action

Attorney review recommended before signing

Project address

4120 E Van Buren St

Trade

Electrical

GC

Northstar Builders

Owner

Copper Ridge Holdings

Contract amount

$485,000

Bid date

2026-05-29

Execution deadline

2026-06-20

Project type

Tenant improvement

Biggest issues before signing

  1. 1

    Pay-if-paid or conditional payment language found

    Severe

    Payment could be conditioned on the GC receiving funds from the owner, shifting owner nonpayment risk to the subcontractor.

  2. 2

    Schedule, delay, or acceleration exposure found

    Severe

    The subcontractor may carry delay damages, no-damage-for-delay limits, or acceleration duties without matching compensation.

  3. 3

    Proposal and exclusions are not clearly incorporated

    High

    If the subcontract does not attach and prioritize the proposal, broad contract documents may supersede the exclusions that protected the bid.

  4. 4

    Strict change-order or notice requirements found

    High

    Late notice or work performed before written authorization may waive payment or time extensions.

  5. 5

    Backcharge or setoff rights need limits

    High

    Broad backcharge language can deduct costs without notice, cure opportunity, proof, or agreed rates.

Review counts

Contract vs bid conflicts7
Hidden scope flags5
Missing documents6
Clarification questions26
Issue log items36

Category ratings

Higher-priority categories deserve cleanup before execution.

Scope gapSevere
PaymentSevere
ScheduleSevere
Change orderSevere
BackchargeHigh
Insurance and indemnitySevere
Local code and AHJSevere
Labor and wageLow
Design responsibilitySevere
Warranty and closeoutModerate
Flow-downSevere
Ambiguous languageSevere
Missing documentSevere
Document conflictSevere
Financial exposureSevere

Contract vs bid comparison

Direct mismatches between excluded or limited bid items and subcontract obligations.

ItemBid positionContract positionConflictRiskRecommended clarification
Engineering or delegated designBid appears to exclude engineering, calculations, or delegated design.Subcontract appears to require engineering or delegated design.Professional design responsibility may be shifted without fee, schedule, or insurance basis.SevereExclude delegated design unless specifically priced, insured, and listed with deliverables.
Overtime, premium time, or accelerationBid appears to exclude overtime, premium time, or acceleration.Subcontract appears to require overtime, manpower increases, or acceleration.Schedule recovery costs may be pushed to the subcontractor.SevereClarify standard working hours and require written change order for acceleration, resequencing, weekend work, or premium time.
Permits and inspection feesBid appears to exclude permits, inspection fees, or third-party fees.Subcontract appears to assign permits, inspections, licenses, or fees to the subcontractor.Potential unpaid permit or inspection obligation.HighState that permits, utility fees, and third-party inspection costs are excluded unless listed as an allowance or change order.
Temporary facilities and hoistingBid appears to exclude temporary facilities, dumpsters, lifts, scaffolding, storage, or hoisting.Subcontract appears to assign temporary facilities or equipment obligations to the subcontractor.Rental, equipment, logistics, and disposal costs may be unpriced.HighList temporary facilities by responsible party and price any subcontractor-provided equipment separately.
Testing and inspectionsBid appears to exclude testing, inspections, or commissioning.Subcontract appears to require testing, inspections, or commissioning.Third-party and retest costs may be shifted to the subcontractor.HighIdentify who pays for required tests, inspections, failed tests, retests, and commissioning.
Sales tax, freight, storage, or escalationBid appears to exclude tax, freight, storage, or material escalation.Subcontract appears silent, fixed-price, or inclusive of these costs.Material and delivery exposure may be absorbed by the subcontractor.HighState whether tax, freight, storage, and escalation are included, excluded, or carried as allowances.
Warranty durationBid appears to limit warranty or carry a standard one-year basis.Subcontract appears to require a longer or broader warranty.Warranty cost and callback exposure may exceed the priced basis.ModerateAlign warranty duration, start date, exclusions, and manufacturer warranties before signing.

Hidden scope flags

Broad words that can turn unpriced work into subcontractor responsibility.

Hidden or vague obligation

Extra work without added pay

Language: "no additional compensation"

Why it matters

This can block recovery for acceleration, resequencing, field directives, or work outside the priced basis.

Question to ask GC

Please confirm extra work, acceleration, and resequencing require a written change order.

Severe

Cost impact: High to severe

Hidden or vague obligation

Work that is not shown clearly but could be treated as included

Language: "reasonably inferable"

Why it matters

The GC may argue that unpriced items were foreseeable and included in the lump sum.

Question to ask GC

Please confirm that only specifically listed scope is included unless added by written change order.

High

Cost impact: Moderate to high

Hidden or vague obligation

Complete system responsibility

Language: "complete and operational"

Why it matters

System language can pull in controls, supports, testing, startup, accessories, and coordination not listed in the bid.

Question to ask GC

Which exact system components, accessories, testing, and startup items are included in our scope?

High

Cost impact: Moderate to high

Hidden or vague obligation

All plans and specifications by reference

Language: "per plans and specs"

Why it matters

Broad incorporation can override the subcontractor's narrower proposal and exclusions.

Question to ask GC

Do our proposal, inclusions, exclusions, and bid date control over conflicting drawings and specs?

High

Cost impact: Moderate to high

Hidden or vague obligation

Open-ended scope

Language: "all work required"

Why it matters

Open-ended wording can make the subcontractor responsible for unlisted work needed by other trades or the GC.

Question to ask GC

Please revise the scope to list included work and preserve our stated exclusions.

High

Cost impact: Moderate to high

Recommended contract revisions

Plain-language edits to request before signing.

  1. 1

    State that permits, utility fees, and third-party inspection costs are excluded unless listed as an allowance or change order.

  2. 2

    Exclude delegated design unless specifically priced, insured, and listed with deliverables.

  3. 3

    Clarify standard working hours and require written change order for acceleration, resequencing, weekend work, or premium time.

  4. 4

    List temporary facilities by responsible party and price any subcontractor-provided equipment separately.

  5. 5

    Identify who pays for required tests, inspections, failed tests, retests, and commissioning.

  6. 6

    State whether tax, freight, storage, and escalation are included, excluded, or carried as allowances.

  7. 7

    Align warranty duration, start date, exclusions, and manufacturer warranties before signing.

  8. 8

    Please confirm that only specifically listed scope is included unless added by written change order.

  9. 9

    Which exact system components, accessories, testing, and startup items are included in our scope?

  10. 10

    Do our proposal, inclusions, exclusions, and bid date control over conflicting drawings and specs?

  11. 11

    Please revise the scope to list included work and preserve our stated exclusions.

  12. 12

    Please confirm extra work, acceleration, and resequencing require a written change order.

  13. 13

    Subcontractor's proposal dated [date] is incorporated into the subcontract and controls over conflicting scope language.

  14. 14

    Subcontractor exclusions and clarifications are incorporated and shall not be superseded by general scope language.

  15. 15

    Subcontractor is not responsible for work outside the specific scope listed in Exhibit A unless authorized by written change order.

  16. 16

    Premium time, acceleration, resequencing, and overtime are excluded unless mutually agreed by written change order.

  17. 17

    Existing condition repairs are excluded unless specifically listed in the subcontract scope.

  18. 18

    Permits, testing, inspections, engineering, utility fees, and third-party costs are excluded unless specifically included.