signing a contract make you feel like you're stepping off of
a cliff?? (continued
from page nine)
Clauses to Watch Out For in Construction Contracts
If the contractor states that he never enforces
the clause of the construction contract that you are expressing
concern about, then he shouldn't have that clause in his contract.
If he refuses to remove or edit the particular clause that you
are concerned about, then you should be concerned as to whether
or not he plans on enforcing it. Why else would he insist on keeping
the contract written as is?
Something else to think about... If we subcontractors would insist
on better contracts (ie: contracts that do not put the subcontractor
at such risk) the general contractors would have no choice but to
change the way their contracts are written!
Don't feel bad though, I still accept contracts that are risky
to me. I request changes and when the general contractor calls
me and tells
me that he does not want to change his contract (usually his reason
is that my contract dollar amount does not justify the changes)
I then have to decide if I want to accept the contract as is or
Also though, I have turned down more than one job due to the riskiness
of the contract because I couldn't justify putting myself at such
risk for a small contract. A $2000 contract could end up costing
you $10,000, $20,000, $30,000 or more.
How, you ask? Because, if you end up in breach of contract and/or
litigation due to a clause that you allowed to remain in the contract,
it is going to cost you WAY more than the $2,000 that the contract
was written for.
BE CAREFUL !! BE AWARE !! BE STRONG !! when it
comes to construction contracts and your own best interest!
One of this series on construction contracts clauses
forms / Proposal forms
Insurance in California