How to Negotiate A Contract: Listen In to Real Subcontract Negotiation
That thick subcontract the GC just sent over is loaded with clauses designed to protect them, not you. In this episode board-certified construction attorney Alex Barthet lets you listen in on a live contract negotiation as he works to level the playing field for his client.
Hear the real back-and-forth on critical issues like securing the right to stop work for non-payment, capping exposure on unapproved change orders, limiting liability to your actual percentage of fault, and fighting back against insane insurance deductibles. Get a first-person perspective on contract negotiations, revealing the arguments, compromises, and leverage points that can transform a risky contract into a fair one.
Highlights in this episode:
- The Right to Stop Work vs. Pay-When-Paid: Hear the strategic compromise when the GC’s hands are tied to their own prime contract, and how to secure your payment bond rights (as a compromise when the project is bonded).
- Capping Unapproved Change Orders: Learn how to argue for a limit on unapproved changes to prevent your company from becoming the project’s interest free bank.
- Cure and Commence the Cure: Discover the vital contract language that gives you a realistic timeframe to fix an issue before facing backcharges or termination.
- Liability Limited to Percentage of Fault: Understand how to negotiate indemnity and defense obligations to ensure you’re only responsible for the problems you cause.
- Consequential Damages: Uncover the hidden exceptions in waiver clauses that can expose you to massive liability and how to counter them.
- Navigating Six-Figure Deductibles: A candid discussion on exorbitant OCIP and builder’s risk deductibles that developers push down to GCs and subcontractors.
Have Questions? Contact Board Certified Construction Expert Alex Barthet by email at alex@barthet.com or give him a call at 305-347-5295. Check out our resources at www.TheLienZone.com.
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