The construction industry in the United States is very important to the American and global economy. With about 10% of the world’s market share, it is the second largest construction industry on the planet. It was worth about $1.162 billion in 2016. The problem is that is a rapidly changing industry. It eliminated at least 40% of its workforce between 2006 and 2011. If you are having a building constructed or are renovating an existing building, running your contracts past the right construction attorneys can make all the difference in the world.
Here are some reasons you need the blessing from a construction law firm before you sign anything:
- This will make it more likely that the project will be able to be completed on time. Most contracts in the instruction industry are American Institute of Architects (AIA) contracts. While these are standard in the industry, they do not normally include liquidated damages. When these are in place, they can encourage contractors to finish their work on time by giving them financial incentives to do so. Good construction attorneys can help draft these clauses.
- You should be able to have some input on who does the work. The way most construction contracts are written allows the company doing the work to hire whomever they want. Talking to the right lawyer for business owners can help give you more input into the hiring process that results in getting the right people to work on your project.
- Having your contract looked over by your attorneys can help prevent you from being charged for things you did not expect. When construction companies look at a project and give an estimate of the costs, the quote is just that, it is an estimate. When you have everything itemized in the contract, so you know what you are paying and for what, you can prevent some increases in the price tag on the work being done. Having attorneys look everything over before you sign anything will give you more protection in this area.
- You can make sure you have more protection with the right warranties. Your attorneys will look over the contract and make sure there is protection for you in the form of the right warranties. You should have them covering the labor and materials. The warrantees you want are from both the contractor and the manufacturer of the materials. There are always variables that will impact the length of the warranty. One variable is the kind of work you are having done. Problems crop up and you will be in a better position if you have the right warranties for your construction project.
- Your lawyer will make sure the contractor has the right insurance for the job. They need to have the right kind and amount of coverage. It is essential that the contractor have property insurance, liability insurance, workers’ compensation insurance, and vehicle insurance. You also have to be confident that the insurance policies they have are from reputable companies, not fly by night company. The lawyers you have will look over your contract to make sure that it has language making it clear that you cannot be held liable for problems and accidents that occur while the job is being completed.
- This can help you make sure the job you are having done is done correctly. Any construction contract that you work out and sign needs to have provisions to make sure your architect can approve any plans that are drawn up by the contractor and can look over and give their blessings to any work that is done. The provision needs to be clear that without that person’s approval, no payments to the contractor will be made. If work is found to not have been done correctly, you need to have the right to stop your payments that have already been made to the contractor.
Having some good construction attorneys on your side will do a lot to help you get the right contract and will give you more peace of mind that the project will go as you expect and want it to.