Nearly everything you buy at a store or online is made before it’s sold. Construction is different. The job gets sold before work starts. That’s why an owner’s first question is likely to be about price. Experienced contractors anticipate the cost question and are ready with an answer that helps sell the job. There’s no […]
Articles
- 2 Mar
- 2 Mar
Nineteen states have changed their construction contract law in the last few months. Some of these changes are trivial. Others will affect contractors throughout the state. In several cases, legislatures are simply falling in line, writing new statutes to mirror law adopted recently in other states. Highlights are below.
- 12 Jan
Why do so many construction contractors use lame contracts? Builders who know better continue to use agreements that don’t comply with the law. That’s no way to run a business. And I think the day of reckoning is not too far off. If not renewed, the 30% solar tax credit expires on December 31, 2016. […]
- 22 Oct
Every contractor and subcontractor has to deal with warranty – a claim that something wasn’t done right and should be fixed at no cost to the owner. If you haven’t had a warranty claim yet, stand by. It’s going to happen. Nearly all states either require an express (written) warranty or impose an implied (understood) […]
- 23 Sep
Have you heard those words from an owner? Last week I got a call from a contractor who had been told exactly that. He still had tools and equipment on the job. He was owed money. His crew and subs expected to be paid. Now what? A contractor terminated for good cause could be liable […]
- 27 Jul
Pick up a contract for any good-sized commercial or industrial project and you’ll be holding 50 to 100 pages. I’ve never seen a contract for a significant public works project shorter than 50 pages. Even the most popular A.I.A. model contract (A201) is 40 pages. Why so long? That’s easy. Both sides are trying to […]
- 23 Jun
Nearly every state requires notices and disclosures in construction contracts, especially residential contracts. What’s required varies from state to state. But most states require at least several of the following: A signed and dated written contract Contractor license or registration number Date when work will start and be finished Payment schedule Mechanics’ lien warning A […]
- 23 Jun
You’ll see the words “defend, indemnify and hold harmless” in many construction contracts. That’s an indemnity clause – and it can be toxic for contractors. I’ll explain. One common form of indemnity gives an owner or a designer the right to recover from a contractor for every loss on the job, even losses caused 100% […]
- 19 Apr
Mike and Cheryl Ording had a leaky basement in their Milwaukee home. A salesman for Everdry Waterproofing offered to solve the problem. According to the Ordings, the salesman claimed they “would never have water in their basement again” if Everdry did the waterproofing. Reassured, the Ordings signed the contract. A few weeks after work was […]
- 9 Mar
A fire on September 7, 2009 did serious damage to the home of David and Carol Butler. The Butlers selected Purofirst of Milwaukee to do the repair work and signed an “Authorization” form provided by Purofirst. The Butlers moved out and Purofirst went to work. Six months later, work was done and the Butlers moved […]