Contract Execution for General Contracting

Open the client’s award letter, email, or notice of intent to award. Note the contract value, selected alternates, provisional sums, and any conditions attached to the award, such as board approval or funding steps.

Place the award details side by side with your final proposal and any agreed clarifications. Confirm that the base scope, alternates, unit prices, and allowances match what you intended to provide.

Highlight any differences between the award and your proposal, such as partial acceptance of alternates, changed quantities, or new conditions. Note any unclear items that need to be discussed with the client before drafting the contract.

Check that the awarded schedule, including start date, substantial completion, and any intermediate milestones, matches what was proposed or negotiated. Note any changes the client has stated in the award.

Write a short summary of the award details in the opportunity or project record, including final contract value, chosen alternates, and key dates. This summary will guide the next steps in contract preparation.

Send the award summary to estimating, operations, and accounting so everyone understands the agreed starting point before contract documents are prepared.

Ask the client, or review the request documents, to see whether they require use of their standard contract form or whether your company’s standard contract can be used. Note any statutory or owner-specific requirements.

If the client’s form will be used, request the latest editable version from them. If your company’s form will be used, download the current approved template from your internal document library, not an old version on someone’s computer.

Collect all documents that will be referenced as part of the contract, such as the request for proposal, your final proposal, addenda, drawings, specifications, schedules, and any written clarifications or exceptions.

Make a list of all anticipated contract components in the order they will appear (for example, agreement form, general conditions, supplementary conditions, scope exhibits, drawings, and specifications). This list will guide assembly and review.

Within the project or opportunity folder, create a “Contract – Draft” subfolder and place all base documents there. Use clear file names so reviewers can quickly find the right items.

Send the contract document list to the estimating, operations, and commercial reviewers so they understand what will be included in the agreement. Invite them to request any additional exhibits they feel are needed.

In the agreement form, fill in the project name, location, client legal name, your company’s legal name, and contract identification numbers if required. Confirm spelling and legal entities against official records.

Insert the agreed contract value, including base price and any accepted alternates. If the contract requires a schedule of values or line-item breakdown, attach or reference the appropriate document from estimating.

Fill in payment terms such as invoicing frequency, payment timing, retainage percentage, and any special billing procedures like use of specific forms. Ensure these match what was understood in the proposal stage or later negotiations.

Enter the agreed start date, substantial completion date, and any critical intermediate milestones. If dates are still tied to a future notice to proceed, clearly state how dates will be established.

List all drawings, specifications, and exhibits that form part of the contract in the appropriate section of the agreement, using the document list you prepared earlier.

Save the draft agreement with a clear version label (for example, “Contract_Agreement_Draft_v1”) in the contract folder. This will help track changes as review and negotiation proceed.

Gather the final proposal documents, including scope sections, assumptions, exclusions, and any clarifying emails that defined what you are providing. Place them in front of you while drafting.

Write a concise summary of the major elements of work in plain language, organized by trade or project area. Focus on what will be built, where, and at a high level how, without repeating the entire specification.

Create a section that lists specific inclusions that might otherwise be assumed or overlooked, such as temporary protections, after-hours work, or specific finishes. Use bullet points to make this list easy to read.

Create a separate section listing items that are clearly not included in the contract, such as certain utilities, specialty equipment, or hazardous materials abatement if that is outside your scope. Make sure exclusions match prior communications with the client.

Review the draft scope exhibit with estimating and, if possible, the proposed project manager or superintendent. Ask them to confirm that the description aligns with what they priced and how they plan to build.

Once agreed, format the scope of work document as a contract exhibit with a clear title and date. Save it in the contract folder and add it to the list of referenced contract documents.

Based on company policy and the size and risk of the project, decide which internal roles must review the contract, such as a commercial manager, finance leader, or external legal advisor. Confirm their availability for the required timeframe.

Send reviewers the draft agreement, scope exhibit, contract conditions, and any client standard terms. Include a summary of the project, contract value, and any known risk concerns from earlier stages.

Ask reviewers to focus on items such as indemnity, insurance requirements, liquidated damages, change order procedures, payment terms, and dispute resolution. Encourage them to highlight both unacceptable terms and terms that are simply unusual.

Gather comments from all reviewers into a single log, grouping them by contract section and issue type. Note whether each item is a required change, a preferred change, or a point to watch during execution.

For significant risk items or major deviations from company standards, schedule a brief discussion with leadership to decide what positions you will take with the client. Agree which issues are non-negotiable and which have some flexibility.

Revise the draft agreement and, if appropriate, prepare a separate list of proposed changes or exceptions that can be shared with the client during negotiation. Save this as a new version in the contract folder.

Send the client your draft agreement or, if they provided the form, your marked-up version with comments. Include a brief cover message summarizing the main areas where you propose changes or clarifications.

If there are significant changes or sensitive issues, request a meeting or call with the client’s representative and, if appropriate, their legal or procurement staff. Live discussion often resolves issues faster than long email threads.

During the discussion, explain your reasoning for requested changes in plain language, focusing on fairness, clarity, and practical project implications. Listen carefully to the client’s perspective and be open to alternate wording that preserves your protections.

As you reach agreements, update your comment log to show which items have been resolved and how. Note any items where you conceded, any items the client accepted, and any issues that remain open.

After negotiations, revise the agreement, exhibits, and conditions to incorporate all agreed changes. Be careful to update both the main body and any referenced documents so they align.

Provide the client with a clean version of the updated contract and, if they wish, a comparison showing changes. Ask them to confirm that this reflects the agreements reached and is ready for signatures.

Create a short summary that includes contract value, client name, project description, major risks, key contract terms, and any exceptions from standard conditions. Attach this summary to the contract package.

Send the final draft contract and approval summary to the internal approvers defined in your company policy, such as executive leadership, finance, and operations. Clearly state that you are requesting final approval to sign.

In your message, call out any significant deviations from company standards, such as higher-than-usual liquidated damages or unusual insurance requirements. This allows approvers to focus on the most important items.

Respond promptly to any questions approvers raise about terms or risk. If their concerns require changes to the contract, coordinate with the client to make those adjustments before seeking signature authority.

Once approvers agree, record their approval in an internal log or approval tool, noting names, dates, and any conditions. Save this record in the contract folder and link it in the project or opportunity record.

Verify which individual will sign the contract on behalf of your company and how (electronic or wet signature). Confirm timelines so you can coordinate with the client’s signature process.

Agree with the client whether your company will sign first or whether the client will sign and send to you. Consider your internal policy; some companies prefer to sign last so they see the fully executed document.

Create a final, locked version of the contract with all agreed changes and exhibits. Insert signature blocks for both parties with correct legal names and titles. Double-check page numbers, attachments, and references.

If using an electronic signature platform, upload the document and place signature and initial fields where needed. If using physical copies, print the required number of originals on appropriate paper and prepare tabs for signature locations.

Have the authorized signer review the final version briefly and sign in all required places. If using physical copies, ensure ink signatures are clear and consistent. Date the signatures as required by the contract.

Provide the signed contract to the client according to the agreed method, with clear instructions on where to sign and how to return the fully executed document. Track delivery and follow up if return is delayed.

Once the client returns the signed contract, check that all required pages are signed and initialed, and that no pages are missing or replaced. Save the fully executed version in the “Contract – Executed” folder and note the execution date.

In your project management or enterprise resource planning system, create a new project record or update an existing one with the final contract value, client information, project name, and key dates.

Work with accounting or project controls to assign a unique project number and establish standard cost codes that match your company’s chart of accounts. Ensure these codes align with how the scope and estimate were structured.

Input payment terms, retainage, billing format requirements, and any applicable taxes as specified in the contract. This information will drive how invoices are generated later.

Attach the fully executed contract, scope exhibit, schedule, and any major commercial attachments to the project record. Make sure these documents are easy for project managers and accounting staff to access.

Check that the assigned project manager, project engineer, superintendent, and accounting contact have appropriate access to the project record and associated documents in all relevant systems.

Ensure that all required fields are complete and that the project appears in standard project lists and reports. Notify the person responsible for project handoff that the contract setup is complete.

Arrange a short meeting involving sales, the assigned project manager, superintendent (if known), preconstruction or estimating representative, and accounting or project controls. Set the meeting soon after contract execution.

Create a simple summary highlighting contract value, scope highlights, key dates, major risks, special terms (such as liquidated damages or unusual insurance), and any important allowances or alternates.

During the meeting, review the summary and show where details can be found in the executed contract. Emphasize items that will affect field operations, change management, and billing from day one.

Confirm who is responsible for managing specific contract requirements, such as reporting, insurance certificates, or schedule milestones. Agree on immediate next steps, such as project kickoff scheduling and budget upload.

Share links to the executed contract, exhibits, and project record in your systems so team members can access them without hunting through email. Confirm that everyone can open the files.

In the sales or customer relationship management system, mark the opportunity as closed-won and link it clearly to the new project record. This closes the sales process and transitions the job fully into delivery.