If you’re uncomfortable with risking your personal assets, you should be. You should never sign a personal guarantee. Too much can go wrong, and it will be your entire financial life on the line, not just your company.
To have a valid lien in Texas, before you can even think about filing the lien with the county clerk, you need to make sure you have sent proper notice required to have a valid lien.
Are you ensuring you’re getting paid for what you are owed in your construction projects? It is so important to understand what you are responsible for when filing a lien. Remember, one single error in the lien filing process could cost you thousands of dollars and invalidate your lien.
Liens are important because the construction industry runs on credit and the Contractor is the one extending the credit. This means the Contractor put forth labor and material and then waits to get paid. If you follow all the lien procedures correctly, it will give you the closest thing to a guarantee of payment in this business.
Have you ever had the unpleasant—and costly—surprise of a general contractor putting additional job requirements into your scope of work? Fortunately, there’s a way to protect yourself: by preparing an itemized bid that lists exactly what you agree to do for the reflected price. Itemizing your bid and then thoroughly reviewing the subcontract before signing is the best way to be clear about your expectations and to prevent financial ruin from an unexpected work requirement. So—prepare your bids this way and protect your bottom line as a subcontractor.
The truth is that any provision in a subcontract that says you cannot file a lien is unenforceable. That means even if you sign a subcontract that states you cannot file a lien, you can still file a lien. Don’t let a general contractor convince you otherwise.
The first rule about subcontracts is…there are no rules. Whatever you sign in a subcontract will be used against you. The prime contract, plans and specifications, and schedule are the most common documents in a subcontract, but be aware that there could be others. It’s up to you to find these documents and ensure that you understand them before signing the subcontract.
Attorneys write subcontracts for the General Contractor, NOT the Subcontractor. There are so many legal terms that are not easily understood. Subcontractors and materials suppliers must be aware of this and seek legal counsel before entering a contract and agreeing to unfair terms. This blog will discuss essential topics every subcontractor needs to understand.
Remember: Whatever you sign in a subcontract will be used against you. This blog covers three critical topics every subcontractor needs to understand before signing the next subcontract: subcontract documents, personal guarantees, and retainage.
Delay damages can quickly eat away at any expected profit on a project; it is crucial to avoid them at all costs. When preparing your bids for a new construction project, be realistic from the start. There is a lot of strategy and importance involved in placing an honest proposal. Understanding your construction bid and how it could affect your liability on a project down the road is crucial.
Most construction contracts have a schedule for the progress of the work. Along with a schedule, most construction contracts will include a financial punishment for failing to complete your work on time. This penalty is known as a delay damage.
Most subcontractors think when they get terminated on a construction job that their responsibility to the project ends there. But that may not be the case.