After an hour long phone conference with a client, I have had several thoughts, only a few of which I can share here (grin). The first is that my friends and clients in the construction industry are hurting, but need to work with an attorney to assure that the pain is lessened. The second is that more, not less, precision is needed in construction contracting these days.
The reason for the first thought is that the construction industry has taken a hit lately. The news is fraught with stories of the economic downturn and its impact on construction. While the money may be hard to part with, all construction professionals should get their contracts and business practices audited regularly to avoid risk and assure, as best as is possible, that they are protected. One place to get such triage is through my firm, DurretteBradshaw, PLC. Or, of course, through me individually.
If you don’t use DurretteBradshaw, please use someone else.
On the second point, clients need attorney fees provisions, indemnity clauses and to assure that a scope of work is very specifically defined. Wiggle room is not available. in tough economic times. Owners will look for something closer to perfection when money is tight than when money is not. Contractors should also. Your contract is the first line of defense. While no contract can possibly cover every contingency and contracts are only as good as those who sign them when it comes right down to it, a good base contract is the best shield.
No construction project goes perfectly. Weather, companies going out of business and unforeseen conditions always occur. The contract lets the parties decide how to deal with inevitable change. A good contract at the beginning can help you avoid mechanic’s liens, arguments and the inevitable lost revenue that comes with having to resort to these sorts of tactics.
At least in Virginia, the contract will be enforced absent some serious criminal or policy violation (along the lines of trading your first born for a job). Take advantage of this. Make sure that the contracts that you sign are such that you know your rights, with precision at the outset.
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Hey Chris – you’re dead-on with this post. I can’t count how many awful situations could have been thwarted with proactive legal TLC.
Some good news to report, however, is that most of our clients turn to proactive representation after being cornered in a bad legal situation.
Good explanation of the problem. And good advice: “Whoever you choose. Just choose someone.” These contractors are spending big-money, and in this penny-pinching environment, they really need to be cautious.
Thanks Scott. If only we could talk them into doing it without having to have a problem first! As always, I appreciate your input.
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