Are you a Contract-less Contractor?

By: Renee Centurion, Esquire, MAZURKRAEMER Of-Counsel, Litigation Group

I often meet contractors who still work on a handshake or a vague, unsigned proposal.  While this may be the easiest way to do business upfront, it can have disastrous consequences. A construction contract is vital and here are five reasons why:

1. The law requires it in some instances!  For example, the Pennsylvania Home Improvement Consumer Protection Act requires a contract for all jobs over $500 with residential homeowners.  The law also requires that the contract contain particular terms and specific information.

2. A contract sets and clarifies expectations. For example, a contract defines what the scope of work will be and specifies who is responsible for each part of the project.  Owners know exactly what they are getting and contractors know exactly what to build.

3. A contract helps you get paid. Using a contract spells out the amount you will be paid and when the owner must make a payment. If you are not paid, a contract can provide remedies to ensure payment before you continue to work.  A contract can also provide options for mediation and arbitration prior to or instead of a lawsuit.

4. It is easier to resolve a dispute if you’ve got a contract. With a handshake deal, the parties are often relying on assumptions and memory to piece together the terms of the deal. This can make a dispute particularly difficult and costly to resolve.

5. Using a contract is a professional way of doing business. The end result of your work is a quality finished project. A contract is that first quality step!

Need a contract?  MKBL offers affordable flat rate packages for contracts customized to your business.  Some examples of our offerings include:

1. Construction Contracts
2. Subcontractor Agreements
3. Employee Handbooks
4. Design Agreements
5. Handyman Terms & Conditions
6. Company formation documents
7. Referral Partner Contracts
8. Non-Disclosure Agreements

Renee M. Centurion, Esq.
Of Counsel