Episode 205. Key Construction Contract Provisions Every Subcontractor Should Know

Karalynn Cromeens, a construction litigator, stresses that contractors shouldn’t fear writing their own contracts. Clear, straightforward language is the best way to manage client expectations and protect your business. Complex legalese and borrowed contracts often lead to expensive errors. With simple guidance and attention to state laws, anyone can create an effective contract that truly works.

Trust your instincts before agreeing to contracts. If clients show early red flags or try to alter agreements, walk away. Clear, simple contracts work best. Boundaries prevent trouble. Financial need should never outweigh caution. Avoid stress, costly mistakes, and lawsuits.

In this week’s episode, Karalynn is joined by construction attorney, Caroline Beavers, to discuss how the modern subcontract is broken and the best practices to break it down and negotiate it! If you are a subcontractor and tired of getting screwed over by your contracts, tune in and get informed on how YOU can best navigate the modern-day subcontract! The best way to level the playing field is to equip subs with the knowledge and know-how, and this episode does a great job of doing exactly that in a plain-English, easy-to-grasp format.

Karalynn welcomes Adam Goldman ‪@franchisecoachchannel‬ to the show to explore the fundamentals of franchising and what it really takes to turn a franchise into lasting wealth. Adam begins by clarifying what sets buying a franchise apart from building one yourself, highlighting how established brands come equipped with tested systems and reliable processes. In this episode, Adam walks through the typical investments and startup costs involved in franchising. He breaks down the importance of operational support and marketing resources, emphasizing how these tools can make or break a new business owner’s success. Listeners will learn about various franchise models—some requiring hands-on management of employees, others relying on subcontractors. Adam shares his approach to matching clients with the ideal franchise brand, outlining the critical skills and mindset needed to thrive in the industry. The conversation covers income opportunities, royalty fees, and the different options available if you ever decide to exit your franchise. Beyond franchising, Adam touches on additional strategies for wealth creation, such as investing in index funds and real estate. He explains how these alternatives can complement or diversify a business owner’s income stream. Adam also discusses his coaching process and the resources he provides for those curious about entering the franchising world. Whether you’re just starting out or considering a major career move, this episode delivers practical advice and reliable guidance for anyone thinking about franchise ownership.

A lot can go wrong when a contractor signs a subcontract without reading the fine print, and too many people don’t realize the risk until it’s too late. First Rule Contract Manager founder and co-CEO Eliot Wagonheim has seen firsthand the impact of dangerous contract provisions. In this episode, you’ll hear about: What flow down provisions can mean for your bottom line Why notice and indemnity matter more than you think How to handle pay when paid clauses and termination for convenience This is a conversation for anyone working in commercial construction who wants real solutions. 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.

Break the mold, build your brand. Victoria King Meyer did just that. Karalynn welcomes Victoria, founder of Progressio Global and The Chemical Show, as they dive into reinventing success beyond corporate walls. Victoria’s leap from chemical engineer and industry executive to entrepreneur shines with strategy, storytelling, and bold community building. Discover why podcasting, events, and mastermind groups power her impact, learn the real challenges of scaling, hiring, and letting go for growth, and explore the transformative role of personal branding for leaders ready to chart their own course.

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.