Our Denver construction lawyers have said it time and time again: contracts are the lifeblood of the construction industry. Despite this, many subcontractors enter negotiations without ever considering that they could be signing their name on a document that will ultimately condemn their business.
Beneath the foundation of every building is an equally strong contract, but subcontractors can’t expect these contracts to be hand-delivered to them. Remember, your relationship with other parties on a project is contingent on the contract you signed. Even if you’ve worked with a contractor ten times over, you still need to review your contracts to ensure that your best interests are represented in writing.
In this two-part series, a Denver construction lawyer will discuss the importance of having your contracts reviewed prior to signing on the dotted line. If you require contract review in Denver, consult our experienced lawyers. At Cotney Construction Law, we lay it all on the line for the success of the construction industry. Our legal team is comprised of former construction professionals, contractors, and construction law experts. When it comes to your contracts, we turn over every stone to ensure a high level of transparency and a complete understanding of your rights.
1. Unrequited Trust
Let’s face it, the more you work with a contractor, the more likely you are to form a bond of trust. As projects go by, subcontractors will continue to provide top-tier work for contractors that pay them in a timely manner, which works out for both parties…until it doesn’t. All it takes is one instance of nonpayment to throw a relationship into a tailspin. Can you guess who typically comes out on top? That’s right — the contractor. Before you engage in the improvement of real property, make sure you have signed a contract that has been reviewed by a Denver construction attorney. The last thing you want is a business relationship formed on the basis of trust to fall apart and unravel your entire business. The important thing to remember about trust is that it’s a two-way street. If you and a contractor trust each other, there’s no reason NOT to sign a contract stipulating the scope of work, project deadlines, and payment responsibilities. And even if you do trust them and a contract has been furnished, there’s no harm in calling your attorney for assistance with construction contract review in Denver.
2. Contracts Are Long and Complicated
Another reason why subcontractors should hire a lawyer for contract review in Denver is the fact that most contracts are long and complicated. This is an obvious tip, but one that many subcontractors fail to take seriously. Too often, our Denver construction attorneys hear the horror stories about subcontractors that tried to review their own contract, which include:
- Misinterpreting details
- Assuming that the contract was written in favor of the subcontractor
- Failing to understand the relevance of certain contractual terms in relation to construction law
- Scanning for “obvious problems” when contracts may be written to take the reader’s attention away from certain details
- Not noticing certain vital clauses that could be missing
- Ignoring the “nitty gritty”
Subcontractors who attempt to review their own contracts could be setting themselves up for failure. If cost is an issue, consider the fact that the cost of having a legal professional review a contract is going to be much less than the cost of a breach of contract, which will also require the services of a Denver construction attorney.
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.