--- name: contract-clause-analyzer title: Contract Clause Analyzer description: Analyze construction contract clauses. Identify risks, obligations, and key terms using NLP. author: datadrivenconstruction author_url: https://github.com/datadrivenconstruction/DDC_Skills_for_AI_Agents_in_Construction/tree/main/1_DDC_Toolkit/Document-Control/contract-clause-analyzer license: MIT version: 0.1.0 execution_mode: open jurisdiction: general practice: construction language: en --- # Contract Clause Analyzer ## Business Case ### Problem Statement Contract review is time-consuming and error-prone: - Important clauses missed - Risk provisions overlooked - Inconsistent interpretation - Long review cycles ### Solution AI-assisted contract clause analysis that identifies key provisions, flags risks, and extracts critical terms. ## Technical Implementation ```python import pandas as pd from datetime import datetime, date from typing import Dict, Any, List, Optional from dataclasses import dataclass, field from enum import Enum import re class ClauseType(Enum): SCOPE = "scope" PAYMENT = "payment" SCHEDULE = "schedule" CHANGE_ORDER = "change_order" TERMINATION = "termination" INDEMNIFICATION = "indemnification" INSURANCE = "insurance" WARRANTY = "warranty" DISPUTE = "dispute" LIABILITY = "liability" FORCE_MAJEURE = "force_majeure" SAFETY = "safety" COMPLIANCE = "compliance" OTHER = "other" class RiskLevel(Enum): HIGH = "high" MEDIUM = "medium" LOW = "low" INFO = "info" @dataclass class ContractClause: clause_id: str section: str title: str text: str clause_type: ClauseType risk_level: RiskLevel key_terms: List[str] = field(default_factory=list) obligations: List[str] = field(default_factory=list) deadlines: List[str] = field(default_factory=list) amounts: List[str] = field(default_factory=list) notes: str = "" @dataclass class AnalysisResult: contract_name: str analyzed_date: datetime total_clauses: int clauses: List[ContractClause] risk_summary: Dict[str, int] key_dates: List[Dict[str, str]] key_amounts: List[Dict[str, str]] class ContractClauseAnalyzer: """Analyze construction contract clauses.""" RISK_KEYWORDS = { 'high': ['indemnify', 'sole discretion', 'waive', 'forfeit', 'liquidated damages', 'consequential', 'unlimited liability', 'hold harmless', 'no limit'], 'medium': ['shall', 'must', 'required', 'obligated', 'responsible', 'liable', 'penalty', 'default', 'breach'], 'low': ['may', 'should', 'reasonable', 'mutual', 'consent', 'approval'] } CLAUSE_PATTERNS = { ClauseType.PAYMENT: ['payment', 'invoice', 'retainage', 'progress payment'], ClauseType.SCHEDULE: ['schedule', 'completion date', 'milestone', 'time is of the essence'], ClauseType.CHANGE_ORDER: ['change order', 'modification', 'additional work', 'variation'], ClauseType.TERMINATION: ['termination', 'terminate', 'cancellation'], ClauseType.INDEMNIFICATION: ['indemnif', 'hold harmless', 'defend'], ClauseType.INSURANCE: ['insurance', 'coverage', 'policy', 'insured'], ClauseType.WARRANTY: ['warranty', 'guarantee', 'defect', 'workmanship'], ClauseType.DISPUTE: ['dispute', 'arbitration', 'mediation', 'litigation'], ClauseType.LIABILITY: ['liability', 'damages', 'limitation'], ClauseType.FORCE_MAJEURE: ['force majeure', 'act of god', 'unforeseen'], } def __init__(self): self.clauses: List[ContractClause] = [] def analyze_text(self, contract_name: str, text: str) -> AnalysisResult: """Analyze contract text.""" self.clauses = [] # Split into sections/clauses sections = self._split_into_sections(text) for i, section in enumerate(sections): clause = self._analyze_clause(f"CL-{i+1:03d}", section) self.clauses.append(clause) # Generate summary risk_summary = { 'high': sum(1 for c in self.clauses if c.risk_level == RiskLevel.HIGH), 'medium': sum(1 for c in self.clauses if c.risk_level == RiskLevel.MEDIUM), 'low': sum(1 for c in self.clauses if c.risk_level == RiskLevel.LOW) } key_dates = [] key_amounts = [] for clause in self.clauses: for d in clause.deadlines: key_dates.append({'clause': clause.clause_id, 'date': d}) for a in clause.amounts: key_amounts.append({'clause': clause.clause_id, 'amount': a}) return AnalysisResult( contract_name=contract_name, analyzed_date=datetime.now(), total_clauses=len(self.clauses), clauses=self.clauses, risk_summary=risk_summary, key_dates=key_dates, key_amounts=key_amounts ) def _split_into_sections(self, text: str) -> List[Dict[str, str]]: """Split contract into sections.""" sections = [] # Simple split by numbered sections pattern = r'(\d+\.[\d\.]*\s+[A-Z][^\.]+)' parts = re.split(pattern, text) current_title = "" for i, part in enumerate(parts): if re.match(r'\d+\.[\d\.]*\s+[A-Z]', part): current_title = part.strip() elif part.strip() and current_title: sections.append({ 'title': current_title, 'text': part.strip() }) current_title = "" # If no sections found, treat whole text as one if not sections and text.strip(): sections.append({'title': 'Contract Text', 'text': text.strip()}) return sections def _analyze_clause(self, clause_id: str, section: Dict[str, str]) -> ContractClause: """Analyze single clause.""" text = section.get('text', '') title = section.get('title', '') text_lower = text.lower() # Determine clause type clause_type = self._determine_type(text_lower) # Assess risk level risk_level = self._assess_risk(text_lower) # Extract key terms key_terms = self._extract_key_terms(text) # Extract obligations obligations = self._extract_obligations(text) # Extract dates deadlines = self._extract_dates(text) # Extract amounts amounts = self._extract_amounts(text) return ContractClause( clause_id=clause_id, section=clause_id, title=title, text=text[:500] + "..." if len(text) > 500 else text, clause_type=clause_type, risk_level=risk_level, key_terms=key_terms, obligations=obligations, deadlines=deadlines, amounts=amounts ) def _determine_type(self, text: str) -> ClauseType: """Determine clause type from content.""" for clause_type, keywords in self.CLAUSE_PATTERNS.items(): if any(kw in text for kw in keywords): return clause_type return ClauseType.OTHER def _assess_risk(self, text: str) -> RiskLevel: """Assess risk level of clause.""" high_count = sum(1 for kw in self.RISK_KEYWORDS['high'] if kw in text) medium_count = sum(1 for kw in self.RISK_KEYWORDS['medium'] if kw in text) if high_count >= 2: return RiskLevel.HIGH elif high_count >= 1 or medium_count >= 3: return RiskLevel.MEDIUM elif medium_count >= 1: return RiskLevel.LOW return RiskLevel.INFO def _extract_key_terms(self, text: str) -> List[str]: """Extract key defined terms.""" # Look for quoted terms or capitalized multi-word phrases patterns = [ r'"([^"]+)"', r"'([^']+)'", r'\b([A-Z][a-z]+(?:\s+[A-Z][a-z]+)+)\b' ] terms = [] for pattern in patterns: matches = re.findall(pattern, text) terms.extend(matches[:5]) return list(set(terms))[:10] def _extract_obligations(self, text: str) -> List[str]: """Extract obligation statements.""" patterns = [ r'(?:contractor|owner|party)\s+shall\s+([^\.]+)', r'(?:contractor|owner|party)\s+must\s+([^\.]+)', r'(?:contractor|owner|party)\s+is\s+(?:required|obligated)\s+to\s+([^\.]+)' ] obligations = [] for pattern in patterns: matches = re.findall(pattern, text, re.IGNORECASE) obligations.extend(matches[:3]) return obligations[:5] def _extract_dates(self, text: str) -> List[str]: """Extract date references.""" patterns = [ r'\b\d{1,2}/\d{1,2}/\d{2,4}\b', r'\b(?:January|February|March|April|May|June|July|August|September|October|November|December)\s+\d{1,2},?\s+\d{4}\b', r'\b\d+\s+(?:calendar|working|business)\s+days\b', r'\bwithin\s+\d+\s+days\b' ] dates = [] for pattern in patterns: matches = re.findall(pattern, text, re.IGNORECASE) dates.extend(matches) return dates[:5] def _extract_amounts(self, text: str) -> List[str]: """Extract monetary amounts.""" patterns = [ r'\$[\d,]+(?:\.\d{2})?', r'\b\d+(?:,\d{3})*(?:\.\d{2})?\s*(?:dollars|USD)\b', r'\b\d+(?:\.\d+)?%\b' ] amounts = [] for pattern in patterns: matches = re.findall(pattern, text, re.IGNORECASE) amounts.extend(matches) return amounts[:5] def get_high_risk_clauses(self) -> List[ContractClause]: """Get all high-risk clauses.""" return [c for c in self.clauses if c.risk_level == RiskLevel.HIGH] def export_analysis(self, result: AnalysisResult, output_path: str): """Export analysis to Excel.""" with pd.ExcelWriter(output_path, engine='openpyxl') as writer: # Summary summary_df = pd.DataFrame([{ 'Contract': result.contract_name, 'Analyzed': result.analyzed_date, 'Total Clauses': result.total_clauses, 'High Risk': result.risk_summary['high'], 'Medium Risk': result.risk_summary['medium'], 'Low Risk': result.risk_summary['low'] }]) summary_df.to_excel(writer, sheet_name='Summary', index=False) # Clauses clause_data = [{ 'ID': c.clause_id, 'Title': c.title[:50], 'Type': c.clause_type.value, 'Risk': c.risk_level.value, 'Key Terms': ', '.join(c.key_terms[:3]), 'Obligations': len(c.obligations), 'Dates': ', '.join(c.deadlines[:2]), 'Amounts': ', '.join(c.amounts[:2]) } for c in result.clauses] pd.DataFrame(clause_data).to_excel(writer, sheet_name='Clauses', index=False) return output_path ``` ## Quick Start ```python analyzer = ContractClauseAnalyzer() # Analyze contract text contract_text = open("contract.txt").read() result = analyzer.analyze_text("Construction Contract", contract_text) print(f"High risk clauses: {result.risk_summary['high']}") # Get risky clauses high_risk = analyzer.get_high_risk_clauses() for clause in high_risk: print(f"{clause.clause_id}: {clause.title}") ``` ## Resources - **DDC Book**: Chapter 5 - Contract Management