Articles

How Does A Contractor Find More Work? A few years ago, I sat down with an architect friend, Bill Mitchell, to answer a simple question, “How does a contractor find more work?” Bill knows construction. He’s been designing and building residential, commercial and industrial projects for over 30 years. Here’s our list of what it […]

If you’ve never met a GMP contract, let me provide an introduction. GMP is a handy tool put to good use by many contractors. Back in July of 2010, I explained why home improvement contractors in six states (CA, IL, MA, NV, PA and TN) use GMP contracts. In those states, time & material contracts […]

Changes in Construction Contract Law — First Half of 2018 So far this year, eighteen states have changed how construction contractors have to do business. Some changes are trivial. Others will affect most contractors in the state. Here’s a state-by-state run-down on the most significant changes in Construction Contract law.

Limits on Warranty Claims. Is this your worst nightmare? You get a call out of the blue complaining about a job you finished many years ago. The caller complains your work was defective – required a lot of repairs, many thousands worth in fact. And the person complaining isn’t even someone you know. It’s someone […]

The Wrong Way to Close-Out a Project A few years ago, Eric Novelli, a Tennessee contractor, agreed to have Wagner Heating & Air install the HVAC system in a new 3-story home Novelli had under construction. There was no written contract.When work was done, Wagner called for final inspection by the City of Chattanooga. The […]

Earlier this month I got a question from a construction contractor negotiating a deal with the owner’s attorney. The attorney wanted a termination clause in the agreement. The contractor wanted the job but didn’t want to give his client the right to back out of the deal once work started. “Why even have a contract […]

Construction contract law can be more than a little complex. Every state has different requirements – notices, disclosures, warranties, waiting periods, penalties. The list grows longer every year as consumer protection laws multiply. What’s a contractor to do? I’m going to have a suggestion a little later. But first I’ll offer an example of what […]

In January of 2015, Nicholas and Monica Koudela selected Bill and Bob Johnson to build their new single-family craftsman style home in Willowick, Ohio. The Johnsons offered a contract to do the work for $227,200. The heading on the signed agreement showed “Johnson & Johnson Builders” as the contractor. Johnson & Johnson Custom Builders, LLC […]

Eighteen states have made changes to construction contract law in the last few months. Some of these changes are trivial. A few will affect nearly every contractor in the state. Here’s a state-by-state summary of the highlights:

I’ve heard that contractors should do business as an LLC so they can’t be sued. Is that true? A conversation I had earlier this month answers the question. But first, let’s define some terms. Members of an LLC (limited liability company) get the advantage of limited liability (like a corporation) but have the option of […]