Collections Disputes

I have specialized in construction disputes for the last 11 years. The following is a list of mistakes you can avoid, before, during and after construction;

  1. Write the contract description of work in layman terms, in other words write the contract from the point of view of someone who does not understand construction (include necessary technical details in parentheses or attach a materials list).
  2. If there is any change that will increase the price, do not do the work or agree verbally to doing the work until the project owner has signed a change order with pricing.
  3. If something seems obvious to you, this does not mean it is obvious to the project owner. A great example of this is when there is an unforeseen barrier to your projects progress. This barrier will require additional work, so you show the problem to the owner but fail to tell them it will be time and materials to discover further details as to what is causing the problem. Write down in detail on a change order all of the facts concerning the detective work that must be done (be very clear that it is not yet known what is causing the delay).
  4. Never give the project owner a dummy price, number of hours or date, this will only confuse and aggravate them.
  5. Complete your punch list on time or give a real completion date.
  6. Always do a 20 Day Preliminary Notice (or equal in your State) and require any subs or suppliers to do the same, project owners need to know you have recourse.
  7. Upon completion of the project, get the project owner to inspect the work and sign a Certificate of Satisfactory Completion of Performance Agreement (we prepare these if you need one).
  8. Follow through on your collections threats if needed, if you file a Mechanics Lien make sure you follow up with a foreclosure in the time allowed by law.
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