In their latest article for the Consilio Construction Newsletter, Michael Filbin and Madeline Jenkins examine the First Circuit's decision in John B. Cruz Construction Co. v. Beacon Communities Corp., which provides important guidance for contractors, owners, and developers involved in preconstruction services. The authors explain that although contractors often contribute budgeting, scheduling, constructability reviews, procurement planning, and other early-stage services, significant project involvement alone does not establish a contractual right to perform the eventual construction work. The court found that participation in meetings, planning efforts, bonding submissions, and other preconstruction activities may demonstrate that a contractor is being considered for a project, but it does not substitute for a formal agreement or a sufficiently definite promise.
The article outlines key lessons for project participants, including clearly defining the contractor's role, documenting whether preconstruction participation creates any future opportunities, maintaining consistency in project communications and records, and distinguishing compensation for preconstruction services from entitlement to construction work. Ultimately, the authors emphasize that clear documentation and well-defined expectations are critical to reducing disputes and avoiding misunderstandings before a construction contract is awarded.
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