With all the “hurry up and wait” that goes on when trying to get a contract out the door, it can be tough to slow down long enough to make sure to include all the appropriate provisions.  There are a lot of things weighing on the mind of a general contractor during the buyout process, and there isn’t always time to be as thorough as one would like.  But as Ben Franklin said, an ounce of prevention is worth a pound of cure: legal snafus can sneak up in many different places, and it’s essential to keep these things in mind before sending a contract rather than placing any hope in assumptions.

This post will detail a few critical items to keep in mind when writing a construction subcontract agreement.

Work with an attorney to make sure your subcontract template is up to par

There are indeed many templates available online, and those can work if the general contractor simply can’t afford to hire an attorney from the outset.  Using standard contract language will cover the general contractor in most circumstances; however, a template will not necessarily address any unique circumstances that may apply.  Every jurisdiction has different laws concerning payment, delays, etc., and it is worth making sure the correct language is in place.

Include provisions force majeure/Acts of God.  The recent pandemic has been another reminder for companies in all industries to take another look at their contract language.  Though no one could have predicted exactly how that situation unfolded, it certainly brought to mind the relevancy of these clauses covering unexpected catastrophes.  Catch-alls don’t solve everything, but it is essential to include some.

Keep reading this blog on the CDO Group website