Contracts are a necessary part of the construction industry. Each detail should be scrutinized because the slightest fault could mean devastating losses to a subcontractor. This is two-part series is by no means an exhaustive list of tips, but a starting point to help subcontractors secure their best interest. To learn more, read part one.
Know When It’s Complete
Construction contracts typically provide for completion by a certain date or period of time, within a specified number of working days, or in accordance with a construction schedule or critical path method. Whatever the date, these terms need to be defined. It’s common for projects to experience delays which impact completion times greatly. This often leads to legal issues, but a Jacksonville construction lawyer can assist you to ensure you are protecting yourself against the risks and potential losses you could incur. When negotiating a contract, be sure there is a clause that will excuse delays and extend the time for completion for delays that are beyond your control.
Know Your Lien Rights
Under mechanics lien law, you have the right to be compensated for the labor or supplies you provide on a construction project. However, you must be careful where exchanging lien waivers is concerned. For one, Florida is among the states where a statutory lien waiver form is required to be considered valid. Also, you want to make sure you aren’t signing away your lien rights.
Know When to Walk Away
We all know how competitive the construction industry is. There may be times when business is coming in effortlessly while other times it may be difficult to land a client. In spite of this, resist the urge to take on a problematic project. Problematic projects may not always be recognized up front; however, there are contract-related red flags that will give you a glimpse of potential trouble ahead. You may have a lucrative contract in front of you, but it will not be beneficial if you are carrying more risk than you can manage. If the contract language is unclear and seems a bit one-sided, have an attorney look it over and be willing to walk away if it doesn’t match up with your business goals or contribute positively to your bottom line.
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.