Make Sure You Get Paid with Karalynn Cromeens

Always review the final scope of work in the subcontract as if it's a new bid, because your original bid exclusions or inclusions may not be legally binding once the subcontract is signed.

Be extremely cautious with 'pay when paid' or 'pay if paid' clauses; understand that these clauses can force you to finance the project and may leave you unpaid if the owner doesn't pay the general contractor.

Do not sign a subcontract that incorporates the 'prime contract' by reference without first obtaining and thoroughly reviewing the prime contract itself, or at least a redacted version.

Treat subcontractor bonds not as insurance, but as a personal guarantee; understand that if a claim is paid, you will be required to reimburse the bonding company, putting your personal assets at risk.

Scrutinize the project schedule in your subcontract, as it dictates delay damages; always get changes to the schedule or additional time for change orders in writing and signed by both parties.

Prioritize negotiation over litigation 'on principle'; legal battles are costly, time-consuming, and rarely result in a net gain for small businesses, making negotiation a more pragmatic approach.

Understand and utilize your mechanic's lien rights as a subcontractor; this is a powerful leverage tool against the owner and general contractor if payment disputes arise.