Articles

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

Insurance is like a hard hat – a good choice on nearly any construction project. But many contractors don’t have full coverage. Let’s take a realistic look at a contractor’s insurance options. We’re talking about two types of coverage; liability insurance and workers’ compensation insurance. Liability insurance protects the general public. If there’s a loss […]

Warranty isn’t a popular topic with contractors. Warranty claims come in two sizes, expensive and even more expensive. Worse, no one wins a warranty dispute. And there’s almost nothing a contractor can do to avoid warranty claims. Better to cross your fingers and ignore the subject. If that’s how you feel, keep reading. I’ll offer […]

Once a month or so I give a talk to a class of young men and women studying for careers in construction. I usually make a point that wasn’t true 50 years ago but is true now without question. Construction is a heavily regulated industry.Government takes an interest in every construction project, from the moment […]