Do you use AI for contract reviews?
I'm writing an article on how you can use AI to review construction contracts. My basic workflow is 1. Build a library of acceptable contract terms. I.e. I only accept liquidated damages under a 10% cap. No AI in this. It's just a basis for starting 2.Review the project scope against your estimate. Does how your client matches scope align with how you have priced the job? Example Prompt: "Review the attached scope of works, drawings, and specifications. Compare them against my letter of offer and estimate summary (attached). For each requirement in the contract documents: 1. Confirm whether it's covered in my estimate 2. Flag any requirements that are additional to or different from my submission 3. Identify any ambiguous scope items that could be interpreted multiple ways Output as a table with columns: Requirement | Contract Reference | Estimate Reference | Status (Aligned / Additional / Different / Ambiguous) | Notes" 3.Review Schedule and Time Provisions. Time is really important on construction projects. Basically it introduces risk (liquidated damages), drives cost (overheads) and sets you up for EoT claims (i.e. have you defined what the client is handing over properly) You can use AI to actually build schedules. But I always use the man hour method for self-perform or use a high-level phase approach for sub-contract projects. Example prompt: "Review the time-related provisions in this contract, including: - Contract completion date and any milestone dates - Extension of time clauses (causes, notice periods, assessment process) - Liquidated damages (rate, cap, triggers) - Float ownership - Suspension provisions Compare against my acceptable positions (attached). For each deviation, provide: - Clause reference - Contract position - My standard position - Suggested amendment - Justification for the change" 4. Cash-Flow Review Basiaclly do a cash-flow check to make srure you are going to be as cash positive as possible