You’ll see the words “defend, indemnify and hold harmless” in many construction contracts. That’s an indemnity clause – and it can be toxic for contractors. I’ll explain. One common form of indemnity gives an owner or a designer the right to recover from a contractor for every loss on the job, even losses caused 100% […]
Articles
- 23 Jun
- 19 Apr
Mike and Cheryl Ording had a leaky basement in their Milwaukee home. A salesman for Everdry Waterproofing offered to solve the problem. According to the Ordings, the salesman claimed they “would never have water in their basement again” if Everdry did the waterproofing. Reassured, the Ordings signed the contract. A few weeks after work was […]
- 9 Mar
A fire on September 7, 2009 did serious damage to the home of David and Carol Butler. The Butlers selected Purofirst of Milwaukee to do the repair work and signed an “Authorization” form provided by Purofirst. The Butlers moved out and Purofirst went to work. Six months later, work was done and the Butlers moved […]
- 18 Feb
Subs and suppliers expect to be paid on time. That’s a problem when an owner is slow to pay the prime contractor. So what are you supposed to do about slow-pay? The obvious answer is a “pay-if-paid” clause in your subcontracts. With “pay-if-paid,” a prime contractor doesn’t have to pay subs until paid by the […]
- 8 Jan
Seventeen states have made changes to their construction contract law in the last few months. My partial list is below. Some of these changes are trivial. Others will affect contractors throughout the state. Don’t expect to find much on this list that makes your life easier. That’s not how it works. Most changes in the […]
- 22 Dec
I like arbitration. Contractors tend to get a fair shake when they arbitrate disputes. Arbitration is usually faster and cheaper than a lawsuit. Another advantage: Most construction disputes are questions of fact, not law. You need an arbitrator with common sense, not a judge and two attorneys with law degrees. Maybe the best reason to […]
- 20 Nov
Home improvement projects in Pennsylvania got more complex last month. I’ll explain what changed. But first, a little background. Pennsylvania’s Home Improvement Consumer Protection Act (HICPA) became law on July 1, 2009. The law had teeth. Home improvement contractors had to register with the Attorney General. Every job over $500 required a detailed written contract […]
- 7 Oct
When was the last time you had a pleasant surprise on a construction project – something that cost less than estimated or was easier than expected? It’s probably been a while. Most surprises are bad news – extra work and higher cost. If you know a way to eliminate surprises, congratulations. You’ve got a rare […]
- 17 Sep
You’ve heard an owner say, “I’m not going to pay until . . .” or “I’m a little short right now because . . .” or worse, “My attorney tells me . . .” Words like that are serious when a progress payment is late. But while work is still under way, you’ve got plenty […]
- 23 Aug
You finished the job last week. This week you get a call from the owner: The floor squeaks — or a door or windows doesn’t close quite right — or there’s a wet spot on the ceiling — or a pipe in the basement is leaking. If you’ve been in construction for a while, you […]