Contract Pitfalls

The following are some common contract provisions which often go unnoticed and cause problems later:

1. Incorporation of prime contract - get copy or delete this provision
2. Independent investigation by contractor - don't say you saw anything other than was reasonably visible
3. Indemnity (not against sole negligence)
4. Bond requirement - allow only at start of job
5. Schedules - must be reasonable or adjust time
6. Payment of permits, hook-up charges, special inspections, taxes, assessments, etc.
7. Liquidated damages - can't be penalty (bonus not required)
8. Protection of work (Only until you are done - not until entire job is done)
9. Architect's responsibilities (AIA Contract) - may assume architect, but owners did not hire architect to inspect
10. No damages for delay clause - insist on time and $$$ for delays, not just time.
11. No payment unless owner pays first. You should get paid regardless
12. Work in other section of specs - you only do work on those plan pages & spec sections you named in your bid, not responsible for "buried" info.
13. Do work per intent even if not in plans or specs - you only do work per your bid, you aren't a mind reader.

IF YOU DIDN'T READ IT OR CAN'T UNDERSTAND IT - DON'T SIGN IT!

CONSULT AN ATTORNEY IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE ABOVE.