Without contracts keeping contractors and owners on the same page and ensuring that their distinct obligations are satisfied, the construction industry would be far too chaotic to succeed. Fortunately, today’s construction professionals understand the immense importance of construction contracts and the dangers of committing to a project without a contract or signing a contract that could put their business in peril. Still, despite the widespread use of contracts in the construction industry, there are many things to be wary of when preparing to take on a new contract.
Every contract comes pre-loaded with promises of riches and reputation, but contractors should always maintain a high-degree of skepticism whenever sitting down at the signing table. The unassuming contractor may fall prey to complex or hard-to-understand clauses that don’t represent their best interests. It’s not uncommon to miss questionable terms and conditions hidden in plain sight, either. This can be avoided with the help of a Raleigh contractor attorney from Cotney Construction Law. Our attorneys know what to look out for in your contracts and ask the hard questions that help you secure safe and profitable projects, including:
1. What Are the Contract Documents?
Generally, a construction contract isn’t a single document, it’s a combination of several documents that explain various components of the agreement. This can be provided to you in the form of multiple contracts or a single, complex multi-page contract. Overly simplified contracts and absurdly complex contracts should be approached with caution and the help of a Raleigh contractor lawyer.
2. What Type of Contract Am I Signing?
There are many different types of contracts used in the construction industry, including lump sum, unit price, cost-plus, and time and materials contracts. Depending on the particulars of the proposed project, the type of contract you sign can have a significant effect on your bottom line. When you partner with an attorney from our Raleigh construction law firm, they can review your contract to ensure that you aren’t signing a contract that hurts your business. We can also draft a new contract to replace your original contract.
3. Can I Negotiate My Contract?
You should never sign a contract that presents substantial risk to your business. It’s always a good idea to negotiate your contracts before signing on the dotted line. If you want to increase the urgency and efficacy of these negotiations, consult a Raleigh contractor attorney for assistance. Remember that regardless of how valuable a contract is, your services are just as valuable. Don’t be afraid to negotiate to protect your business. If your work speaks for itself, you should be able to reach an agreement with an owner.
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.