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Look for This in your Contracts | 5 Minute Friday

⏱️ 5:34 🎤 Host
AUDIO EPISODE
Look for This in your Contracts | 5 Minute Friday
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Chapters

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  • 0:00
    Burn Pro Gear Sponsorship
    The hosts introduce Burn Pro Gear as a sponsor, highlighting their customizable team apparel with no minimums.
  • 0:54
    Trimble Project Site Sponsorship
    Trimble Project Site is introduced as a sponsor, emphasizing its ease of use for subcontractors in a collaborative environment.
  • 2:30
    Introduction to Contract Tips
    The hosts welcome listeners to Five-Minute Friday and introduce the topic of five things to watch out for in contracts.
  • 4:59
    Attorney Carolyn Cromans' Advice
    The hosts mention their friend, attorney Carolyn Cromans, who provided the five key contract tips.
  • 5:22
    Review Your Scope
    The first tip advises contractors to carefully read and understand the scope of work outlined in the contract, as it supersedes their bid.
  • 6:22
    Prime Contract Responsibility
    The second tip warns against agreeing to terms of the prime contract without reviewing it or crossing out clauses making subcontractors responsible for it.
  • 7:57
    Material Cost Increases
    The third tip recommends adding language to contracts that allows for payment of increased material costs, especially during volatile times.
  • 10:06
    Manage Your Schedule
    The fourth tip stresses not agreeing to an unachievable schedule and including clauses for extra time due to material delays or labor shortages.
  • 11:20
    Signed Change Orders
    The fifth tip emphasizes the importance of obtaining a signed change order before performing any extra work to ensure payment.
  • 13:14
    Call to Action
    The episode concludes with a request for listeners to rate, review, and share the podcast.

Speakers

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Key Takeaways

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Always thoroughly read the contract's scope of work; your bid's scope may not be what's legally binding unless specifically folded into the contract.

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Avoid blindly agreeing to the terms of the prime contract; either request a copy to review or cross out clauses that make you responsible for it.

✦

Proactively add language to your contracts allowing for compensation due to increased material costs, especially in unpredictable markets.

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Do not commit to a project schedule you cannot realistically meet; include clauses in your contract for extensions due to material delays or labor shortages.

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Never perform additional work without a signed change order; otherwise, you risk not getting paid for the extra services rendered.

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Familiarize yourself with the process for change orders specified in the contract before signing, ensuring clarity on how extra work is approved and compensated.

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Regularly consult legal experts or resources like the Subcontractor Institute for specific contract language and advice relevant to current industry challenges.

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