3 Big Mistakes Contractors Make Before Starting a Project
How you begin a project will often determine how you finish. Unfortunately, some projects fail before they even begin. In a previous article, we discussed four mistakes contractors can avoid before starting a project. These included not getting the contract in writing, failing to plan, contracting without a license, and submitting low bids. Our experienced Miami construction litigation attorneys will highlight three additional mistakes contractors make.
1. Signing a Bad Contract
Getting the contract in writing is one thing, commencing a project with a badly written contract is another. This is not to say you will never run into a bad contract. The very nature of construction is risky so you are bound to experience this from time to time. However, finding yourself in this position more often than not is not a good sign. A poor contract can affect your payments, your right to sue, and it can leave you way out of budget due to factors like change orders. A Miami construction litigation attorney will always advise you to read your contracts thoroughly before you sign it. Second, make sure you understand the terms and conditions because what you sign, you are liable for.
2. Pursuing Non-Compatible Relationships
Our Miami construction litigation lawyers know how competitive working in construction can be; however, you should never be so desperate for jobs that you partner with the wrong people. Contracting with the wrong people leads to:
- Incomplete drawings and specifications
- A poor quality product
- Paying additional costs
We recommend you put a process in place to qualify the owners, subcontractors, and suppliers you work with. Before working with someone, be sure they are reputable and that their finances are in order.
3. Lacking Insurance
Construction is such a high-risk industry. Having insurance covers the risks by protecting you, your assets, and third-parties. It’s an important component of running a profitable business whether you have your company or whether you are a business of one. Before beginning any project, be sure that all of your insurance is current and that your insurer is aware of project risks. Also, be sure the party you are contracting with has the insurance they say they have. Besides, if an injury occurs on your jobsite, you could end up in litigation.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.