Ensure You Have The Right Construction Contract

 

Construction Contracts

At Barron & Associates, we have many years of experience in assisting general contractors,subcontractors, and material suppliers in preparing, bidding, negotiating and litigating construction contracts.  As litigators in numerous construction defect and construction disputes, we understand the importance of having carefully drafted construction contracts with the necessary and beneficial terms and conditions which will provide the contractors with their contract administration, project management, and claims and dispute handling.

Our attorneys commonly handle public and private construction contract drafting and negotiations related to:
 

• Identification and modification of critical contract clauses, such as indemnity clauses, hold harmless clauses, payment clauses, termination clauses, dispute resolution clauses, attorney's fees provisions, and scope of work clauses

• Prequalification requirements

• Scope of Work Interpretation and Disputes

• Scheduling Issues and Delay Damages

 

Home Improvement Contracts

 

Oftentimes, most of the construction disputes with homeowners stem from improper handling of the Construction Contract and Change Orders.  Thus careful drafting of the Home Improvement Contract must be followed.

 

Disputes over payments often occur when the homeowner and contract are not on the same page regarding the contract price and the value of any additional work as the additional work was not put in writing.  A detailed Construction Contract which clearly identifies both the Contractors and Homeowner's rights and obligation will assist the parties in managing the project.In addition, it is important for any contractor who performs home improvement work to be aware of the rules and regulations affecting the home improvement industry.  For example, in 2005 the California Legislature introduced AB 316, which became effective on January 1, 2006, requiring contractors to include various amended notice and disclosure provisions in all home improvement contracts to better provide homeowners with an understanding of their rights when executing a home improvement contract.  Some of these laws can be found in Business and Professions Code § 7159, which include the following:

 

• The writing shall be legible with the appropriate headings and typeface

• Before any work is started, give the buyer a copy of the contract signed and dated by both the contractor and the buyer.

• Provide the buyer with a notice of right to cancel.  

• The buyer's receipt of the copy of the contract initiates the buyer's rights to cancel the contract.

• Provide the updated Notice of Mechanic's Lien Language.

• Provide the updated Change Order Language

• Provide the appropriate Notice regarding Performance and Payment Bonds

• Provide the required language regarding Down Payments

• Provide the necessary notices regarding General Liability and Worker's Compensation

• Provide the required information about the Contractor State License Board.

The above list is just an example of some of the requirements that must be included in a home improvement contract, and there are many more new rules regarding specific language that must be included in the contract, in addition to various notice requirements.  Importantly, Contractors can be punished and disciplined for failing to provide these notices pursuant to Bus. and Professions Code section 7159(a)(5) which states: "Failure by the licensee, his or her agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for 
discipline."

As a result, it is important that contractors to have their contracts, and their contract administration procedures and change order policies reviewed, to ensure they are in compliance with the rules relating to home improvement contracts.