In 2021, a study found that the leading cause of construction disputes was poorly drafted or incomplete and unsubstantiated claims, followed closely by failures in understanding or complying with contractual obligations by owners, contractors, or subcontractors. With an average dispute value of $30.1 million and disputes lasting an average of 16.7 months, the cost of these missteps is substantial.

Unfortunately, most of us in the AEC industry aren’t shocked by those statistics, but that doesn’t mean we’re not motivated to change them. At Document Crunch, we know most construction risks start and end with the contract documents. We like to take a problem that project managers (or their risk or legal teams) are facing and strategize how operationalizing the contract could have prevented the issue. That’s how we developed our AI-powered Notice Builder.

The Importance of Notice

Proper notice is like car insurance, you don’t realize how bad you need it until you need it. Project managers typically know what needs to get communicated to owners, like rain delays, late supply deliveries, jobsite vandalization, etc. However, it’s not enough to communicate what’s happening. Contracts dictate that you have to give notice in a specific timeline, in a specific format, through specified delivery methods, and sometimes to multiple people, in order to be legally compliant and receive the time and money you deserve. Project managers may think they are providing notice, but often fail to give proper notice that will protect them legally if schedules, costs, or resources are impacted.

“In over a decade of practicing construction law, I've seen so many instances of project teams trying to do the right thing, but not complying with the contract, which caused huge headaches for the company. One example is on a mega hospital project. The project team had a lot of owner-driven delays due to design issues, and the owner's rep told the Project Executive (they had a great relationship), “Don't worry about it. We got you. You don't give notice because the owner doesn't like this.” The owner's rep was later terminated and the owner refused to recognize that we were due delays because we didn't give notice per the terms of the contract. That cost us millions of dollars in liability,” explains Josh Levy, CEO and Co-founder of Document Crunch.

Our Notice Builder

While executives and attorneys use Document Crunch to review, issue spot, and negotiate a construction contract, project managers use Document Crunch, or Document Crunch’s integration in Procore, to manage the project according to that contract. Users of both Procore and Document Crunch are the first to receive access to our NEW AI Notice Builder within Procore.

Here’s how Notice Builder works:

Step 1: Create & Save a New Notice

To create a New Notice within a project, you’ll complete three quick fields. First, in Situation Details, you’ll select the event type then describe what’s going on and the relevant date. Second, in Potential Impacts, you’ll select what’s been impacted: scope, schedule, and/or cost, but will also have the option in case the full impact is still being investigated. Third, in Next Steps, you’ll explain what actions have already been taken to mitigate the situation and what actions are planned. Then you’ll click Generate Notice and let our AI do its thing.

Step 2: Edit Notice & Copy to Emails Tab

After you click Generate Notice, Document Crunch will reference the contract for the project and draft a notice that meets those contract requirements. The notice draft will include all necessary information as per the contract, and will indicate where you need to edit and fill in additional details like extra dates or backup requirements.

Step 3: Check the notice submission requirements using your playbook or chat

Once the notice is ready, use your playbook or chat to find your submission instructions. Use the event type’s relevant playbook topic to find the relevant notice timing, and the Notices - Where and How section to find out if or how your contract specifies notices must be sent (like certified mail, emails, or overnight couriers) and to whom. If email is a valid submission method, you can copy and paste it into the Emails tab of your project to send now or later. The notice will also be saved in your Document Crunch sidebar if you want to copy and paste it later for contracts that require other delivery methods.

Step 4: Manage Correspondences

If you've put the notice into the Emails tab, you can track it on the Correspondence screen. Whether you need proof it was sent or need others to help edit, you have a centralized place to ensure your notices are contract compliant and supporting the health of the project.

Make Sure Notices Never Lose You Money

With a comprehensive and correct notice that’s been submitted the way the contract says, contractors have a much easier time getting the entitlements they deserve to complete a project. Busy schedules, limited contract knowledge, and many other factors affect project managers giving proper notice. With notices built according to your construction contract and the power of AI, Document Crunch helps take the stress and the emotion out of drafting and sending notices. Your construction teams can get customers every detail they need, as soon as they need it, so your team can focus on what they love doing: completing great projects.

Try out Notice Builder here today.