Articles

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 […]

“I do business on a handshake – never use a written contract. I know that’s not legal. But I do whatever my customers want. I’ve never had a problem. But I keep my fingers crossed.” Maybe you’ve heard a contractor make a claim like that. Is there anything wrong with 100% satisfied customers? I admire the […]

If you’ve never had an insurance repair job, that’s likely to change in 2013. Contractors along the entire eastern seaboard and as far west as Wisconsin and Michigan are about to get an introduction to insurance repair work. But along with the opportunity comes a problem, as described in an email I received this morning: […]

Twenty-five states have made changes in the last few months. Highlights follow. As you read down the list, keep a tally. How many of these changes make it easier to do business as a construction contractor? Alabama – Owners have ten days to cancel residential roofing repair contracts if any part of the insurance claim […]

This isn’t about what happened on October 29. It’s about another storm, the rising tide of states that regulate contracts for repair of storm damage. A little more than a year ago, no state had special rules for insurance repair contracts. Now there are thirteen (by date enacted): May 24, 2011– Minnesota Statutes § 326B.811 […]

Change is inevitable, even in the construction industry. One of those changes is construction consulting, sometimes called CM (construction management) consulting – or CM for short. Veteran builders will remember a time when residential contractors did most framing and finishing with their own crews. Today, a residential contractor with payroll is the exception. Most let […]

Every contractor understands the advantage of getting work done with subs rather than employees. Employees come with headaches like payroll taxes (F.I.C.A., F.U.T.A., S.U.I), employee insurance, fringe benefits and overtime. Collectively, those add about one-third to labor cost. With subcontractors, you simply write a check payable to the sub. No withholding tax. No fringe benefits. […]