Episode 104: Litigation Sucks – Add an Arbitration Clause in Your Deal
There’s no doubt about it. If you’re in construction, you need an arbitration clause in your contract. Attorney and host Karalynn Cromeens outlines exactly why and how its inclusion protects your small business. Tune in and fortify your future!
Sometimes a handshake feels like enough, but in construction, missing details can lead to lawsuits, lost money, and sleepless nights. Today, I’m sharing Carl’s story—the contractor who learned the hard way what happens without a written contract. You’ll hear:
Why managing expectations is everything
How a contract can cover your business
What steps you can take to limit your risk
Key Takeaways
1. A handshake agreement is not enough in construction projects—a well-written, signed contract is essential to protect all parties, properly manage expectations, and provide a legal safety net if disputes arise.
2. The number one reason contractors get into legal trouble is poor management of client expectations. A clear written contract not only sets out the scope of work and terms but also helps educate homeowners on the construction process, preventing misunderstandings and disputes.
3. Contracts do not need to be overly legalistic or complicated. They should be written in plain, straightforward language that is easy to understand, ensuring everyone knows their responsibilities and obligations.
4. While not a legal term, CYA is about including specific provisions in your contract to limit your liability and protect yourself if things go wrong. This can involve limiting damages, addressing issues encountered in past projects, and updating contracts based on new experiences.
5. Residential projects carry unique risks because homeowners are emotionally and financially invested in their homes. Issues tend to escalate quickly if not managed well since homeowners are present throughout the process and can become highly emotional about perceived problems.
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Have you ever wondered why construction professionals struggle with leadership, even after years of success building projects?
Eric Anderton is a construction business coach who has spent decades helping companies move from problem-solving on the job site to building strong teams in the office.
In this episode:
We break down why delegation and accountability are harder than they seem.
Eric reveals simple tools to keep your company focused and growing.
You’ll learn how mindset, culture, and hiring shape leadership success.
When you subscribe to our show, you help us grow. Someone you know may need to hear this story, so please share with your family and friends and consider supporting our mission.
How can you leverage your company’s culture to drive more success? Tommy Cole, vice president of @mcfarlinstanford9275 shares the keys you need to unlock your business growth potential. From building a strong blueprint to retaining an excited workforce, he breaks down the importance of consistent team and client communication in your day to day operations.
Being a contractor is tough, so your contracts need to be tougher. Legal expert Karalynn Cromeens gets to the point in this quick episode covering ironclad contract agreements complete with warranty protection. Listen and save your business’ a$$.
Why do people hold on to clutter, and how does it really affect our daily lives?
Katie Chermak-Wood, founder of KD Home Clutter, started her business during COVID after struggling to balance work, family, and everything in between. Today, she helps people:
– Understand the psychological reasons behind clutter
– Find relief by creating organized spaces at home
– Navigate difficult situations like downsizing, moving, or even hoarding
Katie shares how her process works, stories from her clients, and small steps we can all take to change our habits.
What’s the deal with Warranties!? It’s a question many contractors find themselves asking. Luckily, our very own host, Karalynn Cromeens, happens to know that information like the back of her hand! In this episode of the pod, Karalynn breaks down warranties in construction. What are they? How do they work? What are the most essential do’s and don’ts? Find these answers and more in this week’s episode.
This episode originally aired February 6, 2023.
In this interview, Karalynn sits down with Leslie Shiner, founder of The ShinerGroup, a leading consulting firm specializing in helping contractors gain financial control of their businesses. With years of experience and vast knowledge, The ShinerGroup provides personalized solutions to ensure contractors can easily manage their finances.
From cash flow management to cost optimization, they offer comprehensive services to help contractors take their businesses to the next level. Whether you’re just starting out or looking to grow your existing business, The ShinerGroup is dedicated to helping you achieve your financial goals and reach success.
Take advantage of this opportunity to learn more about The ShinerGroup’s innovative approach and tune in to hear Karalynn and Leslie discuss the impact they’re making in the construction industry.
What makes a space increase in value? Why would a real estate investor or developer bring in an interior designer right at the start of a project?
Liat Siegel has spent years helping clients see the connection between design and profit. She’s worked with everyone from small business owners to people flipping houses, and her approach is about more than just looks.
In this episode. she walks us through:
Why function comes first in her design process
How strategic design can create higher returns
What actually happens when you involve the whole team from day one
Learn more about Hadar Interiors here: https://www.hadarinteriors.com/
With its ups and downs, he’s made it an impressive 20+ years as a homebuilder industry leader. Founder and Owner of Mark D. Williams Custom Homes and The Curious Builder Podcast is a third-generation high-end residential builder in the Twin Cities, creating dream homes through thoughtful remodeling transformations and ground-up custom builds. His experience is invaluable to your own journey as a construction contractor!
Episode 191’s encore show is just as powerful as when it first aired!
What does it take to change your view of what it means to sell in the construction industry?
Tom Reber grew up thinking sales was only for certain people, shaped by his blue-collar background and what he learned from family. Over the years, that perspective changed. Today, he helps contractors rethink how they run their businesses by focusing on these principles:
Success in sales starts with you—before you ever sell a project, you have to build a strong foundation at home and in your mind.
Practicing gratitude, curiosity, and silence can make a real difference in how you connect with clients and close deals.
Discipline, from follow-ups to tracking your numbers, matters just as much as any lead or marketing script.
How does relentless drive for success turn into an urgent need for healing?
Lolita Guarin bulldozed her way through work until her body forced her to confront the costs of unmanaged stress. Her personal crisis led her to become a stress management coach dedicated to helping others understand and overcome their own stress.
Through her C.A.L.M. process, she empowers people to break cycles of burnout and restore well-being.
How do leaders develop the mindset and systems needed to avoid stagnation and achieve growth in their organizations?
Karalynn speaks with Leaders Edge founder HR Huntsman about his personal journey to building successful organizations. HR emphasizes curiosity, growth, and learning as keys to developing a leadership mindset.
With experience in both nonprofit and business environments, he argues that radical accountability is essential. Leaders, he says, must take ownership of their choices and cultivate a growth mindset within teams. He describes how his company helps businesses clarify issues, foster problem-solving, and design systems for effective teamwork.