Articles

“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. […]

Many contractors prefer time and material (cost-plus) contracts. And for good reason. With T&M;, you’re sure to recover expenses and earn a profit. There’s no dispute about the cost of changes. Work can start before design is complete. The job gets done just the way the owner wants – and at the owner’s expense. What […]

The law in most states puts residential contractors at a disadvantage. Omit a required notice or disclosure and your contract is probably unenforceable (at best) and could earn you a fine (or worse). That’s called consumer protection law. No use complaining. It’s not going away. To help protect consumers, several states require that contracts be […]

Every residential contractor knows about an owner’s 3-day right to cancel, sometimes called the Reg Z notice. Any time you do work on the principal residence of an owner (whether new construction, improvement or repair) you have to: Give each owner two copies of the notice. Show on each form the date the right to […]

Most state legislatures make their changes to the law effective on either January 1 or July 1 of each year. Here’s a state-by-state summary of major changes to construction contract law taking effect on July 1, 2012: California – Forty pages of lien laws will change. Civil Code § 8000 to § 9566 will replace […]