Contractors work on hundreds of homes each year. It is common in this industry to use subcontractors to help with completing projects. If you have a homeowner in your development who is not happy with the work done by your subcontractor, then your company could suffer because of your subcontractor's negligence.
Construction conflicts have a negative impact on the builder and their business. Read on to find out how contractors can protect their company.
Get a Contractor License Bond
Contractor bonds are necessary when in the construction business. It is an agreement with a surety company. This agreement ensures that a contractor does not do anything that violate the contractors' laws for his or her state. A contractor bond makes sure that you are in regulation with the codes and laws.
If you do not have a bond, then you can get your license suspended. This results in your company losing money. You can get a contractor license bond by getting a quote from a surety company.
Present a Contract That Protects Your Business
The law states that "All work shall be done in a workmanlike manner." The conflict comes with how workmanlike manner is defined in your state. When you give a homeowner a contract, this document describes the workmanlike manner.
The homeowner receives a contract outlining the payment, your signature and a promise to build his or her home. The information put in a contract is important to the protection of your business. Many contractors are sued because of breach of contract. It is important to know expectations before starting the project. You should keep the following things after completing a project: photos, all paperwork given, home descriptions, and any emails discussing the work. This information is useful for proving the homeowner's expectations.
Examine Your Contracts
If someone file a lawsuit against your company, then you should examine your contracts. The contract should outline your responsibilities and the homeowner's responsibilities. It should also outline any liabilities. Building plans and specifications used by your company is the backbone of a construction project. These are documents that you should utilize when taking on a homeowner.
Many contractors have problems because of not using the proper contract. Every construction project is different. Some contractors try to use the same contract for every job, but this is not always appropriate. It helps to know and understand the laws in your community. Your company should follow regulations. You should not take on a project that you do not have the capabilities of completing.