How and Why Jim Writes his Construction Contracts

Jim had quite a few setbacks in the world of construction, due to the difficult clients he regularly encountered. He had to learn a lot of hard lessons in order to be successful. Jim has a list of stories that can be told, today we have No Contract Pauly. Pauly approached Jim one day with a wad of cash in hand, smugly setting it on the table as they sat around it. Pauly looked at Jim and said, “hey Jim let’s do this one under the table, no contract just cash payments, all I ask is you give me an okay deal”. Jim seeing the wad of hundred-dollar bills tempted him, as they were so dense that they probably would not fit in his carpenter jean pockets.  Jim said he had to think about it, as he thought back to Robber Rob, a job he did without a contract and ended up losing big time.  Pauly replied with a mafioso type look.  “What’s there to think about, all the moneys right here”.

“I can’t do it without a contract Pauly, I don’t even know you” said Jim.

“Are you calling me a liar? Forget about it, you schmuck”.  Pauly, red faced and angry aggressively grabbed his wad of cash and left the meeting.

Jim, older and wiser than he once was, refused the deal.  After Robber Rob, he prudently learned the art of writing a contract.  Here are some basic ideas that came out of his research.

If  you're looking to draft a construction contract in California, there are some key steps you should follow to ensure that your contract is comprehensive and compliant with California law. Here are some tips to help you write up a construction contract that will protect both parties involved in the project:

1. Clearly identify the parties involved in the construction project, including the property owner (client) and the contractor.
2. Provide a detailed description of the construction project, including the scope of work, materials, and any specific requirements or specifications.
3. Outline the payment terms, including the total cost of the project, payment schedules, and payment methods.
4. Set a timeline for the project, including the start and end dates, and any milestones or deadlines.
5. Include warranties and guarantees that the contractor will provide with the construction work.
6. Specify the process for change orders, including how they will be requested, approved, and paid for.
7. Address dispute resolution, outlining the process for resolving any disputes that may arise during the construction project.
8. Include insurance requirements for the contractor, such as general liability insurance and workers' compensation insurance.
9. Once the contract is drafted, have both parties review and sign the contract.

Keep in mind that California has specific laws and regulations regarding construction contracts, so it's important to consult with a lawyer to ensure that your contract is compliant. By following these tips, you can draft a comprehensive construction contract that protects both parties involved in the project.

Ever since drafting a contract off of these basic steps, Jim has never lost a lawsuit. Click here on how to avoid lawsuits and difficult clients altogether.