Can a General Contractor Terminate a Subcontract Without Notice?
A termination for convenience clause allows the general contractor to terminate your subcontract without any notice. If your subcontract contains a termination for convenience clause, it may need some heavier editing before you sign the subcontract.
Why Subcontractors Should Never Sign a Personal Guarantee
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.
Subcontractors: Prepare Bids This Way to Protect Your Bottom Line
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.
What are You Agreeing to When You Sign a Subcontract?
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.
Protect Your Business: Breaking Down 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.
Protect Your Future: Subcontract Documents
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: How to Prevent Being Charged
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.
Delay Damages: Why the Schedule You Agree to Matters
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.
Subcontractor Termination: Hasta la vista, baby!
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.
Subcontractor Termination vs. Default
Understanding how defaults and terminations work as referenced in a subcontract is essential to your company’s success.