Articles

Twenty-five states have made changes to construction contract law in the last six months. Some of these changes are trivial. Others will affect contracts for most jobs in a state. The highlights:

Search for “free construction contract” on the Web and you’ll find Rocket Lawyer near the top of the paid ads. You’ll probably see claims in that ad: “100% free” and “binding in each state.” What could be wrong with that? I’ll count the ways. “Free” is a stretch. Rocket Lawyer is a relationship marketing company. […]

All construction contracts are not created equal. Most attorneys will confirm that they could write a construction contract that either: Makes it nearly impossible to lose money on the job, or Makes losing money on the job almost certain. That’s called contract bias. Every construction contract has bias, favoring either the property owner or the […]

Was there ever a construction project that went exactly as planned? More often, you’re going to have a surprise, something unexpected – like a mistake in the plans or some site condition that requires extra work. Anything can go wrong on a job. And the result is nearly always the same – extra time and […]

I’m old enough to remember when the building code was a slim little volume — slipped easily into the back pocket of my overalls. Not true now. The code comes in 15 flavors, has thousands of pages and carries a price tag to match. The International Residential Code by itself is well over $100, whether […]

Residential contracting is a highly regulated industry. To stay in business, contractors have to comply with state and federal law. That’s not easy, at least partly because new laws are piled on every year. Right now, legislatures in twelve states are considering bills that would affect home builders and home improvement contractors. Nearly all of […]

Most construction contractors have a favorite agreement they use again and again. “My contract worked fine on my last job. It’s a good choice for my next job.” I don’t necessarily agree. But I understand the logic. You don’t have time to negotiate contract terms on every job. You’re a builder, not a lawyer. If […]

Losses from the Moore, OK tornado run into the billions of dollars. Over 12,000 homes have been seriously damaged or destroyed. Healing that loss will take years. But unlike hurricane Sandy, most losses from the Oklahoma tornado will be covered by insurance. If you’re planning to do insurance repair work in Oklahoma, there’s some new […]

Every contractor knows about an owner’s 3-day right to cancel: Agree to build or improve your client’s primary residence and the owner has three days to cncel the deal. It’s federal law (12 C.F.R. 226.15) and applies in all states. Make a mistake on this and the owner has three years to cancel. Here’s a […]

A contractor I know took on a small job at a popular ski resort in Colorado a few years ago. The owner of a chalet wanted a new sundeck, plus some interior work in an unfinished basement — a few week’s work. My contractor friend wrote up a bid, offered his usual agreement, got the […]