Episode 203. Construction Bonds 101: What Contractors Must Know Before Signing

In construction, especially on public works projects, you can’t rely on mechanics liens to protect your right to payment. Government immunity takes that tool off the table. That’s why, in Quit Getting Screwed, I break down another critical layer of protection: payment and performance bonds. These bonds can be the difference between finishing a job and walking away empty-handed. Today, I’ll walk you through exactly how bonds work, why they’re required on public projects, and what every subcontractor needs to know before signing on the dotted line. Because while bonds protect against non-payment and incomplete work, they also come with serious responsibilities—and sometimes, personal financial risk.

Karalynn draws on her decades of experience to explain how overlooking contracts can cost businesses everything. Her book, Quit Getting Screwed, was inspired by watching a client lose his business simply because he didn’t understand the contract he signed.

On this episode of the Quit Getting Screwed Podcast, Karalynn cracks open her book Trust Your Gut and reads Chapter One. She shares the cautionary tale of Carl, a masonry contractor who lost a lawsuit—and payment—after relying on a handshake deal. The lesson? No signed contract, no protection. Cromeens explains how written agreements set clear expectations and shield contractors legally, urging pros to walk clients through each section in plain language and keep contracts updated. Skip the paperwork, and you risk losing both money and recourse. She closes with an invitation to connect and grab her book for more real-world contractor advice.

I started this show because too many people in construction sign contracts they don’t understand, risking everything they’ve built—sometimes their entire business.

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. Love the show? Please rate, review and share!

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/