Whether you’re constructing a new house, renovating an existing home or building out commercial space for your business, having the right language in your construction contract helps avoid disputes and makes all the difference in a lawsuit if the job goes sour.
The most common complaint from both our residential and commercial clients is that the job took much longer than initially projected. Construction delays are not only inconvenient but often lead to unnecessary expenses such as temporary housing expenses, increased insurance premiums and business interruption costs that can lead to reduced revenue and client loss if they can’t access your company’s location.
So, what can you do to ensure that your work is done right and on time? First and most importantly – if you’re in Florida get the heck out because you have no shot at getting anything done on time and very little chance of anything working if it does finish! Expect excuses like we need more time because an alligator ate your blueprints, the floor is uneven because the earth rotates unevenly and the windows leak due to a vast government conspiracy that must remain confidential to protect the safety of the witnesses.
If leaving Florida is not a good option, there are a few more practical solutions to consider. For example, one of the most effective ways to motivate an otherwise unmotivated contractor is including a “Penalty for Delay” clause in the contract. By adding a penalty of $100.00 – $1,000.00 for every day beyond the scheduled completion date, you can be sure that finishing your job will be a top priority for the construction company. Gregg Paley Lighthouse Pt, FL lawyer
Another helpful provision to include in the contract involves linking the percentage of work completed with the percentage of payment made by the owner so that the contractor only gets paid for work that’s been done. As a result, there’s once again motivation to keep your job moving forward while making the other owners who weren’t lucky enough to read this article wait in line!
Additional important considerations include:
- A provision that requires the losing party in any disputes to pay for the attorney’s fees and costs of the prevailing party;
- A waiver of the Florida Statute §558 requirements which allows contractors to have an extensive amount of time to repair defective work before a lawsuit is filed;
- A process to ensure that all subcontractors and workers are paid by the general contractor to avoid lien claims on the property;
- A provision which lets owners retain final payment and both create a final punch list of incomplete items and have sole discretion to approve completion before final payment is due;
- A clear itemization of the time frame and costs for all permits and inspections as well as assurances that the contractor is responsible for promptly resolving permit denials and that any permit related delays won’t affect the penalty for delay clause.
Of course, an experienced contract and construction attorney is in the best position to prepare an effective contract for you and will also be a valuable ally if the spam hits the fan. Gregg Paley at Colson & Paley, LLC has a vast amount of experience drafting contracts and an equally strong track as a litigator if necessary and can represent you in any size or complexity of construction matter. Gregg Paley Construction Contracts and Disputes
Attorney Gregg Paley 