5 Tips to Help Construction Professionals Protect Their Contractual Rights

construction professionalsWinning a bid gives you many reasons to celebrate, but don’t let it distract you from the fact that you still need to protect contractual rights and ensure all legal aspects of the project are in order. Here are five ways that construction professionals can protect contractual rights in all the bids they submit.

  1. Get everything in writing: Make sure all facets of the contract are recorded in writing and verified by the appropriate signatures. Agreements, requirements, expectations, responsibilities and other conditions should be clearly described and included in the written document. Remember that a written contract doesn’t imply distrust of either party; instead, written contracts ensure all factors are clearly specified and that everyone in the transaction is protected.
  2. Maintain licensing requirements: Maintaining your licensing credentials not only enhances your professional reputation, but it can also be a requirement for performing contract work. In some cases, unlicensed contractors may have difficulty enforcing contracts or even getting work in the first place. Comply with your state’s licensing requirements in all areas.
  3. Assume that “no damage for delay” clauses can be enforced: If your contract contains a “no damage for delay” clause, proceed from the assumption that the clause is enforceable. These clauses establish that property or project owners aren’t responsible for damages or issues caused by a general contractor’s delays. They also protect general contractors who may experience delays from subcontractors or suppliers.
  4. Understand the conditions surrounding arbitration clauses: Arbitration clauses allow problems and disputes to be resolved outside of court through arbitration. These clauses are enforceable, but they can be waived. Remember that agreements reached through arbitration are legally binding.
  5. Allow for recovery of attorney’s fees: Include a provision in your contract for recovering reasonable attorney’s fees in the case of breach of contract or other problems.

Construction Monitor gathers and publishes the most recent building permit data from cities throughout the United States. Contact us today for more information on ways that construction professionals can protect contractual rights and ensure their contracts are legally sound. Consult with your attorney or legal representative for specific professional advice.

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