5d • General discussion
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
- 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:
- Confirm whether it's covered in my estimate
- Flag any requirements that are additional to or different from my submission
- 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
Example prompt:
"Analyse the payment provisions in this contract. Calculate the cash flow impact by:
- Identifying payment claim dates, assessment periods, and payment periods
- Identifying retention percentage and release triggers
- Identifying any set-off or withholding rights
Based on my attached estimate and program, model the forecast cash flow under these terms. Highlight any periods where cumulative cash flow is negative.
Compare payment terms against my acceptable positions and flag deviations."
5. Review remaining commercial terms
Bsaicaly the remaining terms I just doa big pattern matching exercise
Example prompt
"Review the following sections of the contract against my standard acceptable terms (attached):
- Liability and indemnity provisions
- Insurance requirements
- Termination clauses
- Dispute resolution
- Warranties
- Intellectual property
- Confidentiality
For each category, output a departures register with:
- Clause reference
- Contract position (quote the relevant text)
- My acceptable position
- Risk if unchanged (Low / Medium / High)
- Proposed redraft
- Justification for amendment"
6. Generate a departures register
Then the final prompt you get AI to compile everything into a departures register
"Compile all identified deviations into a single departures register. Format as a table with columns:
- Item number
- Category (Scope / Time / Payment / Liability / Other)
- Clause reference
- Issue summary
- Contract position
- Proposed amendment
- Justification
- Priority (Must negotiate / Should negotiate / Minor)
Sort by priority, then by category."
Keen to hear what people think of this strategy. I did a video demoing it recently too
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Do you use AI for contract reviews?
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