Tips For Avoiding Construction Contract Issues

Construction Contract Matters Can Be Lengthy And Expensive

Whether you are a contractor or subcontractor, or are involved in the construction industry in another way, the use of contracts is necessary. These documents can have a huge impact on how you do your work, when you get paid and if a job results in a dispute. During the preparation stage, there are certain things you should know that can prevent issue later on.

Troppito Miller Griffin, LLC, is a Kansas City firm focusing especially on construction-related legal matters. We work with many clients to protect them from difficult litigation later on.

How To Prepare For And Avoid Issues

Because we have helped countless clients draft and review construction-related contracts, as well as litigate issues, we are able to offer some tips to avoid construction contract issues. Though we cannot offer specific guidance without knowing your situation, one of the broadest pieces of advice we can offer is to protect your payment. This sounds simple, but can be extremely complex and difficult to untangle without the help of a seasoned attorney.

For example, ensure you understand the ramifications of a “pay if paid” or “pay when paid” clause if one exists.

  • “Pay if paid” clause outlines whether or not the contractor pays the subcontractor. It means that the contractor must only pay the subcontractor if the owner pays the contractor. The contractor and subcontractor then share the risk that the owner will not pay.
  • “Pay when paid” clause, on the other hand, means that the contractor must always pay the subcontractor, but it outlines when the payment occurs — when the builder pays the contractor.

It is always best to have the help of an attorney when you are drafting a contract or at the very least, before you sign it. Litigation can be costly, and will likely take a long time. A lawyer will be able to look at your situation and offer specific pieces of advice to prevent this from happening at all, and keep your business running smoothly.

Your Profit Is Our Priority

We can offer guidance in any construction contract matter, whether an issue has already arisen or not. To speak with one of our experienced construction contract attorneys, please call our Kansas City office at 866-578-5199, or send us an online message.