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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