When project funding finally comes through, owners and contractors alike are eager for shovels to dig in. Owners resist what they see as time-consuming contract negotiations, and contractors fear that resisting unreasonable contract terms will result in the work being awarded to a competitor.
Not so fast. While an owner’s threat to hand a project to the next hungry contractor may be real, a contractor should never sign a contract without understanding key terms and should never, never begin a project without preparing proper legal notices. Even a contract involving a nominal work and an insignificant price can expose a contractor to risk far in excess of the contract price.