Managing construction risks is crucial for project owners. A successful construction project—one that finishes on time, within budget and without defects in design or construction—is the utmost goal. The clearer the contract, the less likely there will be problems. When the construction contract is properly detailed and provides correct and clear information, without conflicting instructions or terms, the project is poised for success.

"The Lucky Seven" are the seven key clauses to which every owner needs to pay particular attention so that the project starts off on the right foot.

• Payment terms; retainage.

Payment terms and conditions are an important part of every construction contract. New Jersey's "Prompt Payment Act," N.J.S.A. 2A:30A-1, et seq. (the PPA), establishes statutory timelines for payment of invoices or requisitions and provides a remedy for general contractors and subcontractors when payment is wrongfully withheld by an upper-tier contractor or owner. Because the PPA is intended to protect contractors, it provides few exceptions to the payment rules. Indeed, the PPA only exempts owners from the statutory timelines for payments to a prime contractor if the work for which the contractor seeks to be paid is not performed "in accordance with" the provisions of the contract. Thus, including a requirement in the payment provision of the contract that all payment applications are required to be "certified" by the owner, construction manager or architect provides owners with a lawful defense to claims under the PPA if the application has not been approved as set forth in the contract.