Although construction firms have a never ending list of tasks to accomplish, one they should never overlook is their construction contract. A construction contract can be the deciding factor in how things unfold on a project. Whether you’re a general contractor putting pen to paper with an owner or a subcontractor agreeing to work under a contractor, this agreement is crucial. Some contracts are extremely fair and others can be absolutely brutal to one party. However, once you agree to sign a contract, there may be nothing you can do. Before you sign an unfair contract, consult a Houston construction attorney.
Common Reasons Why Lawyers Aren’t Hired for Contract Review
In this two-part article, the Houston construction attorneys at Cotney Law will discuss many of the reasons why a construction attorney should review all of a construction firm’s contracts. Before we delve into the benefits of working with an attorney for contract review, lets first review many misconceptions that contractors have in regard to having an attorney for contract review including:
- No Value: They don’t see the value a legal professional brings to a contract review, so the contractor doesn’t want to compensate a lawyer for a service they don’t feel they need. Of course, after a lengthy legal dispute stemming from a contract, construction professionals realize they should have hired an attorney in the first place.
- Save Money: Many contractors are trying to save expenses wherever they can. This includes using boilerplate contracts or having no contract. The irony is that if they had hired an attorney to review their contract, they would actually be saving money in the long run.
- Simplicity: Lawyers involved on projects are often perceived as complicating things. Some contractors prefer to keep things simple, but there is a reason why a lawyer is digging deeper into the language in the contract: to protect their client.
- Efficient: Many contractors want to speed up the process of signing contracts, so they can rollout projects more quickly. Just like completing work on a project, if you rush through the process of drafting and agreeing to a contract, you’re more prone to make significant mistakes.
- Good Relationship: Many contractors fear that presenting their subcontractor with a contract indicates a lack of trust. Although it’s logical to prefer handshakes to ruffling feathers, a contract is a mechanism that can actually ensure that both parties are properly sharing their responsibilities and potential liability when executed properly.
For more information on why you should have an attorney review your construction contracts, please read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.