Articles

In April 2009, Bennett Builders signed a contract to remodel the Stamford, CT home of Tarun Mehta. It was a cost plus job at a price not to exceed $446,900. Under the agreement, work was to be completed by October 2009. Over a year later, work still wasn’t done and Mehta terminated the agreement. Bennett […]

Most contractors don’t get into the money-lending business – at least not on purpose. Contractors want to be paid in full when the work is done. But at least occasionally, you’re going to bump into the Federal Truth-in-Lending (T-I-L) Act. Here’s how it happens: You’re bidding a job for a homeowner and: Offer to take […]

Last week I had a chance to interview Paul Bianchina, author of the new book, Insurance Restoration Contracting. Excerpts from that interview: Moselle: What’s different about insurance repair contracts? Bianchina: Insurance carriers expect nothing but professionalism from their contractors. If you want to do insurance work, plan to comply with every local, state, and federal […]

Every state sets standards for construction contacts. For residential work, most states require very specific notices and disclosures. Heavy penalties apply to contractors who ignore these requirements. Click here and then click on your state to see what the law in your state requires. Contract requirements in your state depend on the type of job […]

Most of solar installation contracts I’ve seen are pretty weak. They don’t cover the essentials and won’t hold up in court. Here’s why. Solar installation is construction contracting. No state exempts solar work from compliance with construction contract law. From what I’ve seen, solar contractors don’t understand that yet. Whether structured as a lease, a […]

In spring of 2007 William and Kristen Bachman decided to remodel their home in North Haven, CT. East Coast Custom Builders got the job for $77,244.50, including a $25,748 deposit. But when East Coast came by the Bachmans’ home to get a signature on the contract, there was a problem. Kristen didn’t have the $25 […]

In the construction industry, the unexpected tends to be expensive bad news. And with every surprise comes an obvious question, “Who’s going to pay?” Owner: “Look, it’s not my fault. You should have known about this. I’m not going to cover for your mistakes.” Contractor: “This is extra work – not part of the deal. […]

We can agree that consumer protection laws serve a useful purpose. But laws too complex invite evasion. California’s home improvement contracting law is a poster child for that proposition. Most contractors don’t comply simply because they can’t figure out what the law requires. California’s CSLB assesses fines (“civil penalties”) against contractors who don’t comply – […]

Last month I listed advantages of construction management (CM) contracting over traditional general contracting. For example, construction contracting is a highly regulated occupation – liens, payments, codes, inspections, bonding, insurance, etc. CM contractors avoid most of these headaches. But if your state requires construction contractors to be licensed, do CM contractors need a license? That’s […]

When you hear the term paper contractor, it’s usually in the context of someone being “only” or “just” a paper contractor. I believe this prejudice against general contractors working as consultants is breaking down. And for good reason. What was known as paper contracting in the last century has morphed into construction management (CM) contracting […]