Contrary to popular belief, success actually makes life harder. Sure, the benefits reaped from success are worth the trouble, but those who assume that everything will be smooth sailing after they achieve success have another thing coming. Successful contractors become successful by excelling at what they do. In other words, they’ve become proficient at delivering projects on-time and under budget, which is literally the only way contractors can become successful on their own. That means putting together strong teams and building a list of dependable subcontractors, suppliers, and specialists. It also means honoring your agreements and doing business ethically.
Sustaining success is another ordeal entirely. Once money starts to flow in at a rapid rate, the only way to keep your company in the green is by tackling multiple projects at once. Doing so allows you to use your assets effectively and ensures that your increasing operational costs are satisfied. Furthermore, it allows you to generate even more revenue, but it also increases your exposure to conflicts, disputes, and construction-related legal matters. Once your annual revenue starts to creep into the neighborhood of $500,000 per year, you’ll want to proceed with caution until you’ve spoken with a Nashville construction litigation attorney. Even a single, ongoing claim can create a logistical nightmare for your construction firm.
Sustaining Wealth Isn’t Easy (On Your Own)
Many contractors work too long and too hard to find that they’ve essentially broken even at the end of their careers. Unfortunately, this is a grim reality for many contractors in the United States. According to Construction Business Owner, “Out of every 100 construction business owners at age sixty-five…”
- (1) will be wealthy on their own volition
- (4) will be financially secure
- (24) will still be working because they have to
- (31) will be deceased
- (40) will need to rely on social security
These figures are shocking to say the least, but they can’t be ignored. Part of the reason why contractors dip into the red by the end of their tenure is the claims and disputes they’ve had to deal with over the years which compound over time. On paper, staying profitable is as simple as making more money than you spend, but it’s never quite this simple in the construction industry. Nonpayment, project delays, contractor-owner disputes, insurance-related issues, and work-related injuries can all prevent a contractor from maximizing their success.
Fortunately, many of these issues can be controlled, prevented, or minimized with the help of our Nashville construction litigation attorneys. Whether you need assistance drafting a new employee handbook that bars you from culpability for an employee’s inappropriate behavior or assistance defending against a citation from the Occupational Safety and Health Administration (OSHA), we have the experience and knowledge required to protect your best interests.
Quality Contracts Limit Financial Risk
Every construction project starts with a contract. If a contract is poorly drafted, hard to understand, or missing common-sense provisions, it’s not a contract you want to sign. Unfortunately, many contractors fail to read the fine print when searching for lucrative opportunities to showcase their workmanship. The value of a contract can be alluring, but investing excessive attention on bad contracts with high price tags will only lead to sustained hardship and frustration.
When an attorney reviews your contracts before you break ground, you can rest assured that it has been scoured for potential pitfalls by an experienced professional. That means you don’t have to worry about provisions that shift liability unfairly from one party to the other, cause you to pay out of pocket for extra work, or otherwise limit your ability to procure a full and final payment.
Limit Faulty Lien Filings
As you’re probably aware, the mechanic’s lien is one of the greatest tools a contractor possesses to obtain due payment from an owner that refuses to pay. Although powerful, it can be bobbled in the wrong hands, leading to a loss of lien rights. Many contractors make the mistake of attempting to file their own mechanic’s lien, which usually doesn’t work out. Here’s why:
- Not serving a notice to the owner prior to breaking ground
- Claiming the wrong amount
- Failure to enforce the lien within one year of project completion
- Not abiding by the specific rules for general contractors or subcontractors
- Not notarizing the lien
Of course, faulty lien filings can be avoided with the help of a Nashville mechanic’s lien law attorney. An attorney who is well-versed in the ins and outs of the construction industry will have all the necessary expertise to file and enforce a lien without any risk to your lien rights. For this reason, we’ve included unlimited lien and bond claims in our Cotney Construction Law Silver, Gold, and Platinum Subscription Plans.
Experience Industry-Leading Savings on Legal Costs
Speaking of subscription plans, contractors generating over $500,000 in revenue per year can save a lot of money by investing in a suitable subscription plan. Legal services don’t have to be complicated or expensive. You plan to stay busy throughout the year, so why not invest in a subscription plan that gives you access to a broad range of on-demand services, such as:
- Attorney On-Demand
- Unlimited Phone Calls
- Unlimited Demand Letters
- Unlimited Contract Review (Non-Dispute)
- Client Portal Access
- 5% Member Discount
- Unlimited Communication
- Unlimited Manual Reviews and Updates
- Unlimited Lien and Bond Claims
- 10% Member Discount
- Unlimited Document Drafting (Non-Dispute)
- Unlimited Manual Drafting
- Annual I-9 Audit
- Unlimited Collections (Including Litigation; Excluding Defense)
- 15% Member Discount
- Unlimited OSHA Defense Up to Citation Contest
- $2,000/month for Legal Spend
- 20% Member Discount
More revenue means more risk. But additional risk can be controlled with the assistance of a Nashville construction litigation attorney. When your revenue starts to creep past the half-million mark, you can’t afford to gamble with the future success of your construction business.
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.