In the context of construction, what is meant by "due diligence"?

Due diligence in the context of construction refers to a thorough investigation and examination of relevant factors before entering into a contractual agreement. This process ensures that all parties involved are aware of the risks, responsibilities, and the overall feasibility of a project. It involves assessing various aspects such as financial stability, regulatory compliance, site conditions, and other potential liabilities that could affect the project's success.

This careful scrutiny is essential to avoid future disputes, ensure that all parties are adequately informed, and mitigate risks associated with unforeseen issues. By conducting due diligence, contractors can make informed decisions that protect their investments and help ensure the smooth execution of the contract.