TEN NEW YEAR’S RESOLUTIONS FOR CONTRACTORS-2021

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   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

How To Get Paid as a Contractor or Construction Company

http://www.entrepreneur.com/magazine/entrepreneur/2009/july/202254.html

This is a great article from Entrepreneur Magazine about how to get paid. Particularly in this economy, I think this is one of the biggest issues my clients are facing. One of the major mistakes that I see clients make is their failure to bill on a regular basis. Do not wait until the end of a project to hit a client with a major bill!

First of all, there should be a clear payment schedule in every construction contract.

Second, there should be a penalty for overdue payments.

Every contractor or construction company should include a clause that entitles them to attorney's fees if they have to engage legal help to pursue payments.

The article does not warn about businesses who are trying to collect from consumers. They have to be careful not to violate federal and state debt collection laws.

Make sure that ALL change orders are in writing and clearly spell out how they affect the price and completion schedule.

Subcontractors should avoid "pay when paid clauses."

I could go on, but it's late. Follow these practices and you are more likely to get paid!

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