Contract Tips for Subcontractors Part 1
The Jacksonville construction lawyers of Cotney Construction Law are advocates for contractors across the country. At every level, contractors must protect themselves, this includes hard working subcontractors who find themselves in conflict with general contractors. In construction, the contract is a critical component of every project, and subcontractors must make sure they are making wise decisions when signing on the dotted line.
We have some helpful tips for when you sign your next big contract. Part two will conclude our two-part series.
Know What You’re Signing
Any construction project can be a daunting undertaking, especially when it comes to deciphering contract language. Nevertheless, you must make every effort to ensure you understand the scope and all other key terms that could have an impact on your business assets. Reviewing the contract carefully is critical so don’t treat this task casually. If necessary, let a Jacksonville construction lawyer review the contract with you to ensure you understand the potential risks passed on to you.
Know How You’re Getting Paid
A healthy and consistent cash flow is what will keep your business thriving. We know that payment terms can vary between 14 and 90 days. The longer the payment terms, the more problems it could cause you where cash flow is concerned. Also, it makes a difference if the contract is “pay when paid” or “pay if paid.” The former delays your payment but by law, the contractor would have to pay you within a reasonable period of time whereas the latter could leave you penniless if the owner doesn’t pay the contractor for some reason. Be sure that the payment terms are something you can live with.
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.