A structural repair contract that goes wrong is not usually the result of a dishonest contractor. It is usually the result of a contract that left the wrong things undefined — scope boundaries that felt clear at signing, change-order mechanisms that seemed fair in the abstract, and closeout obligations that nobody specified at all. The disputes that follow are predictable, and they are preventable if the board knows what to require before the contract is signed. These are the six mistakes we see most often when boards ask us to review or respond to contracts that have already generated problems.
Mistake 1 — Lump sum only, no unit prices for concrete
A lump-sum contract gives the board a fixed number and a defined scope. The problem is that concrete deterioration is almost always worse than Phase 1, Phase 2, or a pre-bid visual survey can fully characterize — because the damage is inside the slab, not on the surface. Demolition reveals more corroded rebar, more delamination, more tendon deterioration than the survey described. A contractor working under a lump sum has three options at that point: absorb the cost, submit a change order, or cut the scope to stay in budget. All three outcomes are worse than the alternative. The correct contract format for concrete restoration is a hybrid: a lump sum for the defined scope, plus pre-agreed unit prices for concrete repair quantities discovered during demolition — square feet of patch, linear feet of tendon, number of anchor replacements. That format makes the inevitable scope growth transparent and priced before it becomes a dispute.
Mistake 2 — No written definition of what 'substantial completion' means
Substantial completion is the contractual milestone that triggers the contractor's right to final payment — typically 95 to 100 percent of the retainage. In a standard construction contract, it means the work is complete enough that the owner can use it for its intended purpose. On a structural repair project with a county compliance deadline, that definition is inadequate. The board needs to specify in writing what substantial completion means for this project: the building permit is closed, the engineer of record has performed the final inspection and issued the re-inspection report, and the county has signed off on the compliance finding. A contractor who has received final payment before the county closeout is completed has no financial incentive to finish the paperwork. Define substantial completion as administrative completion — not just physical completion.
Mistake 3 — Permit responsibility is ambiguous
Building permits for structural repair can be pulled in the contractor's name or the owner's name. If the contractor pulls the permit, they are the responsible party to the building department — inspections run through them, stop-work orders come to them, and the permit stays open in their name until they close it. If the owner pulls the permit, the association is the responsible party. Many boards sign contracts that require the contractor to 'assist with permitting' or 'coordinate the permit process' without specifying whose name it is pulled in. When the permit goes stale because the contractor stopped scheduling inspections, the board discovers — too late — that the open permit is in their name and the fines are accruing against the association. The contract should state explicitly: contractor pulls and closes all permits required for this scope. If the contractor resists, ask why.
Mistake 4 — The engineer of record is not named
Structural repair requires an engineer of record whose stamp authorizes the work. The engineer specifies the repair method, reviews contractor submittals, issues field directives, performs interim inspections, and stamps the final re-inspection report that closes the permit. On a properly run project, the engineer and the contractor work together closely. The board's contract should name the engineer of record and specify the contractor's obligations to that engineer: submittal turnaround times, field directive response times, documentation of quantities and methods as work proceeds. A contract that says 'work will be performed under the direction of a licensed engineer' without naming the engineer or defining the protocol is not binding in any meaningful way. If the board has already retained an engineer, name them in the contract. If the contractor is providing the engineer, get the engineer's name, license number, and firm in writing before signing.
Mistake 5 — No closeout deliverables defined
The closeout package for a structural repair project is a set of documents — not a handshake. It includes the engineer of record's stamped re-inspection report confirming the work corrected the deficiencies identified in the inspection or recertification report; all interim inspection sign-offs from the building department; as-built drawings if the permit required them; product data sheets for all repair materials installed; warranty documents for the membrane or coating system if applicable; and the county's final permit sign-off. A contract that lists 'project completion' as a deliverable without specifying these documents is a contract that will generate a dispute at closeout. List every required closeout document by name in the contract, and tie the final payment to delivery of the complete package — not to the date the contractor says the work is done.
Mistake 6 — Retainage is too low or released too early
Retainage — the percentage of each payment withheld until project completion — is the board's primary financial lever for ensuring the contractor finishes what they started. On structural repair projects in occupied buildings, the work that is hardest to complete — the closeout documentation, the final inspection scheduling, the last punch-list items in hard-to-access areas — tends to be the work done after the contractor has received most of their payment. Standard retainage for structural repair is 10 percent, held until substantial completion as defined in the contract. Contracts that release retainage at 50 percent completion, or that define retainage below 10 percent, or that allow retainage to be reduced upon 'satisfactory progress' without a defined milestone, remove the financial incentive to finish. Hold 10 percent to the end. Release it when the county signs off.