Negotiate Like a Boss – Tips to Score the Best Construction Contract Part 1

Hey there, construction pros! In this episode, Alex dives into the art of negotiating construction contracts. We’re looking at the first three tips out of seven, and trust me, these are game-changers.

Tip 1: Whose Contract Form Are You Using?

Alex talks about the big decision: using your contract form or theirs? He suggests having your custom form ready, especially for those surprise moments. And guess what? It might cost a bit (around $1500 to $2500) to get a custom contract form prepped by a construction lawyer, but it’s totally worth it.

Pro Tip: When you’re throwing your bid out there, add a little clause about accepting the bid within certain days and agreeing on a contract that works for both parties.

Tip 2: Adding and Removing Contract Provisions

Here’s a big one: make sure you can stop work if you’re not getting paid. It’s a common mistake to think this is a given – it’s not. Alex recommends adding specific wording to protect yourself.
And for notices? Don’t get caught off guard with a 48-hour notice. Push for ten days instead. It gives you that breathing room you need.

Pro Tip: Word it so you have time to start fixing things (if needed) rather than being immediately penalized.

Tip 3: Get the Pros to Check Your Contract

Don’t skip on professional reviews of your contract. It might cost you around $1500 to $2500, but it’s a small price for peace of mind. Insurance and bonding checks? Absolutely necessary.
Free Resource Alert: Alex mentions ContractDetective.com for a no-cost initial review.

Wrap-Up:

These tips aren’t just about getting a better deal. They’re about protecting your business and making sure you’re set up for success in every project. Stay tuned for more tips in our next episodes!

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