Here's How You Can Protect Your Business

Construction Contract Review Tips Part 2

General contractors, subcontractors, and every other construction professional knows that contracts are a necessary part of doing business in the construction business. Therefore, a complete understanding of the contract is crucial before entering new agreements. To reduce the risk of a dispute down the line, we recommend working with a reputable Jacksonville construction litigation attorney to ensure you are not signing an unfavorable contract agreement. Read part one of our article for the first few contract review tips.

Dispute Resolution

A seasoned construction professional knows that disputes are typical. Disputes occur between general contractors, owners, and subcontractors all the time, which is why it is important to determine what will happen if a dispute occurs and how the dispute will be resolved. Litigation or arbitration can be the chosen method; however, an arbitration proceeding is the most preferred method of dispute resolution because it is typically the faster and affordable way to achieve a resolution.

No lien Clause

Failing to review your contract clauses could lead to problems especially where payments are concerned. This is particularly true if the contract contains a No Lien Clause. This clause requires a subcontractor or material supplier to waive their lien rights upon signing the contract before any actual work is performed. Waiving lien rights in advance of work performed is prohibited in the state of Florida. Florida mechanics lien law grants lienors the right to file a lien against a property when they have not been paid for the labor or materials they have provided on a project.

Always Consult With an Attorney

Whenever you are dealing with a legal agreement, it is always wise to consult with a Jacksonville construction lawyer. Experienced construction attorneys can spot problematic clauses and negotiate aspects of the contract to ensure you sign a contract that is fair. Additionally, an attorney will help you to understand your obligations under the contract. We cannot stress enough the benefits of retaining counsel with regard to construction contracts. An attorney from Cotney Construction Law will ensure you fully understand the contract you are signing, identify unfavorable contract terms and conditions, negotiate the terms of your contract to address all relevant issues and how disputes will be resolved.

To speak with a Jacksonville construction attorney, please contact us today.

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.