Community Pushback

Construction projects face increasing risks from community opposition, government intervention and evolving scopes. Trent Cotney discusses how suspension, termination and change-order provisions, combined with thorough daily reports, can help contractors protect their businesses.

Community Opposition Is Becoming a Growing Risk

Cotney explained that organized community resistance is becoming increasingly common on large-scale projects, particularly data centers, infrastructure work, manufacturing facilities and multifamily developments. While some concerns are genuine, others may be driven by organized private interests seeking to influence local government decisions.

The result can be significant project disruption. Local governments may suspend projects, revoke permits or impose new restrictions affecting work hours, lighting, environmental requirements or water usage. Even when projects continue, contractors often face increased compliance costs and changing scopes of work.

Because these risks are becoming more frequent, Cotney recommends contractors evaluate them before submitting bids rather than reacting after work has begun.

Three Contract Provisions Matter Most

According to Cotney, contractors should pay particular attention to three areas of every contract.

First, suspension provisions should clearly address what happens if work is paused because of government action or owner decisions. Contractors should ensure they can recover costs associated with demobilizing and remobilizing crews and equipment.

Second, termination-for-convenience clauses deserve close review. While owners often reserve the right to terminate projects, contractors need to understand exactly what compensation they are entitled to if that occurs and ensure similar protections flow down to subcontractors.

“Finally, robust change-order provisions are essential. If government intervention changes project scope or work methods, contractors should have a clear contractual path to recover additional costs resulting from those changes,” Cotney said.

He emphasized that these provisions exist in many construction contracts, but contractors should carefully review the language on higher-risk projects to ensure adequate protection.

Daily Reports Can Become Powerful Evidence

The conversation also highlighted another often-overlooked risk management tool: daily reports.

Daily reports document workforce levels, work completed, delays, directives from owners or design professionals and other important jobsite activities. While many contractors already complete them, Cotney believes they can provide even greater legal protection if contracts establish that owners have a limited window to dispute the information they contain.

Under that approach, if an owner's representative does not challenge the report within a specified number of business days, the contents would be considered accurate. Establishing that presumption early can significantly reduce disagreements months or years later when memories have faded and disputes arise.

Documentation Extends Beyond Production

Cotney also encouraged contractors to use daily reports as valuable safety documentation.

Recording safety meetings, equipment inspections, hydration breaks and discussions of jobsite hazards creates a contemporaneous record that may prove valuable during OSHA inspections or future litigation. Rather than viewing daily reports as paperwork, contractors should recognize them as an important component of their overall risk management strategy.

As construction projects become more complex and public scrutiny increases, contractors can no longer rely solely on technical expertise to protect their businesses. Strong contract language and consistent documentation help establish clear expectations, preserve evidence and improve contractors' ability to recover costs when projects change unexpectedly.

Cotney's advice reinforces a simple but valuable principle: the best protection begins long before disputes arise. By carefully reviewing contracts, anticipating project risks and maintaining detailed daily records, contractors place themselves in a stronger position to navigate today's increasingly challenging construction environment.