As I sit down to write my annual list of resolutions for contractors, I am amazed at how much things changed in 2020. Construction was going well and then, in March 2020, COVID-19 hit. At first, we thought it was going to be a disaster for the construction industry. States, cities and towns shut down projects and many applied for PPP loans. Then, something amazing happened. Construction was considered an essential service and everyone was back to work.  That said, the work world changed: companies were donating their PPE to frontline workers, COVID-19 protocols had to be followed and paperwork had to be filed. Everyone was scrambling to figure out how to comply and keep their businesses going. So, you may or may not ask, what was I, as a construction lawyer doing? I spent March and April thinking about the new risks contractors/construction companies were facing and developing contract clauses to protect the industry. I wrote a number of blog posts with clauses to add to your contra

Contract Clauses Every General Contractor Should Have-Attorneys' Fees

Many clients are surprised when they find out that they cannot collect their attorney's fees if they have to bring an action to collect payment from a client. In fact, they may end up spending more to collect than the actual dollars owed. Obviously, this is not good business. If your clients owe you money, and they have to pay to try to collect, they should get their legal fees back.

There are various ways to write an attorney's fees clause into a contract. You can state that the prevailing party will collect in the event of a dispute, but that subjects the construction company to potential liability for the other party's fees. Why do that?

Here is an actual clause that I put in one of my client's contracts:

If ABC is required to proceed with any action against the Owner for the breach of any provision of this Agreement, then the Owner agrees to pay all of ABC's reasonable attorneys fees, together with interest and costs.

Put a clause like this in your contract NOW!

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