Well-written contracts are necessary to protect your legal rights as a contractor. Knowing what to look for when you review contracts can keep you from signing away the profits and success of your construction business. Part one of this article covered three tips for contract review. In this part, a Little Rock contractor attorney discusses four more tips for checking your contracts.
4. Check Liquidated Damage Provisions
With any liquidated damages provision, it’s important to check the terms. You could be on the hook for large damage payments due to shortages out of your control if the job isn’t completed on time. This portion of the contract should be fair to both parties and not hold you accountable for natural disasters, shortages of building resources, or energy.
5. Make Sure There Is a Lien Clause
Although Arkansas has no specific laws about waiving your lien rights, it is vital you protect your rights to file a lien by including a lien clause. Forgetting to review this section of the contract means you could be out the cost of work or supplies on the job.
6. Carefully Consider Change Orders
Most construction jobs include some changes, even if they’re minor. These additions to contracts can pile up and become overwhelming. Keep all change orders and other contract additions in chronological order somewhere they are easy to access. If they’re on a computer, make sure to backup the information.
7. Hire an Experienced Contractor Lawyer
The best way to review a contract is to have a knowledgeable Little Rock contractor lawyer look it over for you. They have in-depth insights into what can help you negotiate a better contract and make sure your rights are protected. They can also help you with other services like license defense, lien and bond law, and more.
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.