Don’t Start Work Without a Written Agreement

August 5, 2013. Contractors often get excited when they are awarded a nice, new construction contract (or subcontract). Sometimes, they are downright giddy. Unfortunately, they frequently dive into the projects, anxious to get to work and start making money, before they negotiate and finalize written contracts. Next thing they know, it is three months down the road, they have invested time and money into labor and materials, and a dispute arises. Maybe it’s a payment dispute. Maybe it’s a dispute regarding the scope of the contractor’s work. Either way, the contractor is in a bind because he/she does not have a written agreement in place. Don’t put yourself in this position. Most business owners recognize that the “days of the handshake” are, for better or worse, a thing of the past. In most instances, it does not take a long time to negotiate and finalize a contract. It should be done before you invest a single penny or minute of time on the actual work. At a minimum, even if it can’t be finalized and executed before the work starts, make it a priority and get something finalized before you get too far down the road. Also, don’t be afraid to have the contract reviewed or drafted by your attorney. A little bit of money on the front end can save you a ton of money later, and will put you in a better position from a liability perspective, thereby reducing the odds you will end up in costly litigation. Be proactive. Get a contract signed before you lace up your boots.