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Construction contract pitfalls to avoid

On Behalf of | Jul 5, 2016 | Contract Disputes |

If you are in the construction industry in Florida, you know the importance of contracts in your business. Whether you are a builder, general contractor or subcontractor specialist, your construction contracts can have a significant impact on your bottom line. This impact can be positive or negative based upon how your contracts are set up or worded. There are several pitfalls you should be aware of before ever signing on the dotted line.

According to Concrete Construction, one of these pitfalls is a contract clause that starts the warranty or guarantee period of your work from the date on which the final project is completed in total. Guarantees should begin at specific milestones when each sub-project is complete. For example, if all plumbing work has been completed, the warranty for plumbing can begin even while other work on the overall project continues.

The use of non-specific terms, especially when they relate to timing or payments, should always be avoided. Referring to a turnaround time or price that is “market standard” leaves you  customers vulnerable of being underpaid if what is standard in the market changes over time, as can happen.

Great care should also be given to reviewing indemnity clauses and all descriptions of obligations, responsibilities, liabilities and limits of such for you and any other parties to the contract. If you would like to learn more about potential contract issues with building projects, please feel free to visit the construction project and agreements page of our Florida contract law website.


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