Hiring a Contractor: Protect Your Project with a Solid Agreement
Want to fix your bathroom? Get a new countertop or cabinets for your kitchen? If you’re not a DIY carpenter, most real estate owners or developers have to hire a contractor to complete their projects. It is important to hire a contractor that you can trust. It is important to have a well structured agreement with a contractor, even the ones you trust, just in the unfortunate but all too common scenario where your project faces an unexpected hiccup.
A common issue is when you want to fire your contractor but the contract doesn’t set forth a clear process - or worse yet, there is no contract. Without legal guidance and advice, you risk paying for unfinished or subpar work. That’s why having an experienced real estate attorney such as GLO review or draft your contractor agreement is essential to protect your interests and reduce stress.
Essential elements of contractor contracts
What happens when, three months into your project, the price of materials skyrockets, the contractor’s employees quit, or they start to deviate from the design you gave them? The answer to any of the questions may be complex, but they all start in the same place, what does your contract say? These projects are complicated and expensive. The owners that get burned by bad contractors are the ones that did not have a well drafted agreement for their unique project. It is important to protect yourself by consulting with an experienced real estate attorney, like GLO.
Payment Provisions: How You keep things on track
“Payment Provisions” should appear in every written contract during a construction project. Most of the time, these provisions will describe an installment payment schedule of ‘draws.” A well-drafted “Payment Provision” clarifies exactly when payments are due and what work milestones must be completed first. This protects you from contractors demanding full payment upfront or prematurely before earning it. Without clear payment terms, a contractor might start the project, run into minor issues, and then walk away with all your money, leaving you with an unfinished job and little recourse. Ensuring that this provision is clear, unambiguous, and sets up unique markers will be the best way to protect your project.
Change orders
A change order is a formal amendment to a construction contract that modifies the contractor’s scope of work. These changes are common due to the complex and evolving nature of construction projects—it's rarely possible to foresee every issue or variable from the start. Change orders are used to address design changes, plan ambiguities, cost reductions, or unforeseen conditions. To manage these adjustments effectively, it’s essential that the construction contract includes clear procedures for approving and documenting changes. A well-drafted change order clause provides a structured process for negotiating, authorizing, and pricing any modifications to the original scope.
Material Breach and Termination Provisions: Protect Yourself If Things Go Wrong
What if your contractor delays the work, does poor-quality jobs, or makes unauthorized changes? That in large part depends on whether you have “Material Breach Provision” and “Termination and Recover Provisions” in your written contract. Material Breach Provisions include what happens if the contractor fails to complete work on time (any unexcused delays); poor workmanship; excessive change orders; executing unapproved changes; and abandonment. It is also advisable to include a “no damage for delays” clause with the exceptions of the following: delays not contemplated by the parties; unreasonable delays resulting from fraud, bad faith, gross negligence, active interference or abandonment. The Termination and Recover Provision will outline how you can fire your contractor for any of these issues, and potentially get some of your money back in a refund.
GLO IS Your Legal Partner for Contractor Agreements
GLO’s experienced real estate attorneys review, draft, and negotiate contractor agreements tailored to your unique project. We help ensure that payment provisions protect your finances, that breach and termination clauses are clearly defined to minimize risk, and that you fully understand your legal rights before signing. If disputes arise, we guide you through resolution efficiently and effectively.
Working with GLO means having a personalized, legally sound contract designed to avoid costly surprises and keep your project on track. From the initial consultation forward, you’ll have an attorney-client relationship that offers consistent, reliable support. With GLO by your side, you can move forward with confidence, knowing your investment and property are protected.
Contact GLO today to to get the legal protection and clarity you need before hiring—or firing—a contractor, and ensure your project stays on time, on budget, and legally secure.
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