Is There a Penalty When a Contractor Does Not Finish on Time?

A construction worker wearing a safety vest sits at a desk, holding his head in frustration, with a hard hat and a laptop in front of him

Whether or not there is a penalty for a contractor failing to finish on time depends on what the contract says about the completion date and what happens if construction is not completed by that date. Because the contracts are so very different in residential and commercial construction, I will address each separately.  Penalties for […]

What Happens After a Termination for Convenience?

Person tearing a document in half at a desk with a cup of coffee, an envelope, and a laptop nearby, suggesting the cancellation or termination of a contract

Most commercial construction subcontracts have a termination for convenience clause. This clause means that the general contractor can terminate the subcontractor at any time for no reason, just because it is convenient to the general contractor. But what happens after a termination for convenience? A termination for convenience clause exists to allow the general contractor […]

Chapter 9: Pay When Paid Clauses

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Chapter 9 of Quit Getting Screwed, by Karalynn Cromeens   Lioncrest Publishing  Pop quiz: Who is in the best position to finance a construction project? If you answered, “The  owner,” you’d be right. While the owner normally obtains funds from a bank to pay for construction,  they are not the ones who finance the project.  The […]

What is a Change Order Directive?

Contract Agreement

The change order provision in a contract is one of the most important parts, allowing the parties to increase or decrease the scope of work. Every contract has its own unique terms as to what is required to have a change order completed correctly, who can sign, what will be included in the change order, […]