Construction Services Agreement

The involvement of the contractor in the pre-construction phase is valuable and often essential for the final design process of a project as well as for the preparation of the construction phase, such as the program, cost plans, constructability and any technical purchase. Pre-construction service agreements (PCSAs), sometimes referred to as pre-contract service agreements, allow customers to employ contractors before the main contract begins. Construction delays can be protected by the contracting authorities with a lump sum compensation clause in their agreement. Lump sum damages are a fixed amount per day that the contractor pays to the owner for each day of delay in construction. Instead of negotiating damages in court, owners and contractors can agree in advance on a lump sum of damages. .