Contractors

4 Mistakes Contractors Can Avoid Before Starting a New Project

In the construction industry, some situations are unavoidable. However, many times, mistakes happen due to oversight and a lack of planning. Notwithstanding, no project will run perfectly 100% of the time. Contractors should identify potential problems to mitigate potential risks. Ultimately, the best time to do so is before starting the project.

1. Failing to Get the Contract in Writing

As Orlando construction attorneys, we advise contractors to get everything in writing before the project commences. Too often contractors fail to put their agreements in writing. There is too much at stake in construction to take this chance. If the various elements contained in an agreement is not written and understood between parties, this can lead to a disaster down the line. Written agreements leave no room for misinterpretations between parties and serve as real evidence in the event of a dispute.

2. Contracting Without a License

In Florida, contractors are required to have a license to perform construction related work. Unlicensed activity will void a contractor’s contract and takes away a contractor’s right to file bond or lien claims. Furthermore, unlicensed activity places contractors at risk for fines, penalties, and criminal charges.

3. Failing to Plan

Effective planning will save contractors time and money. Planning the budget, project timeline, layout, and other pertinent project elements is the best way to avoid project delays, pricing inaccuracies, incorrect material selection, and dangerous safety hazards. With a plan in place, construction teams will better understand the entire operation from start to finish including the resources needed to complete it.

4. Lowering Bids

Do to competition and tough economic times, contractors may resort to low bids to win a contract. This poses risks for owners and contractors alike. While lowering a bid may not seem to cost initially, it can cost over the course of a project. This is due to some contractors having to use change orders as a means to recover the cost of bidding too low in the first place. Moreover, bidding low on contracts can also make a contractor appear to be inexperienced and uninsured which will likely lead owners to think you are working with unqualified suppliers and subcontractors which could ultimately cost you the contract.

To request a consultation with one of our reputable Orlando construction lawyers, please call us today at 407.378.6575 or submit our contact request form.

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.

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