Often, if you’re working on a project for an attorney, they’ll tell you they want to write the contract. Or a potential client will tell you their attorney will write the contract.
When someone tells you that they, or their attorney, will write the contract for the job you’re going to build, I’d suggest this response: “John / Mary, it’s your job and you can write your contract if you wish, but if our company is going to be involved in the project, regardless of the size or who it’s for, we write the primary contract that’s used to govern our work on the job.”
“You can review and suggest changes or additional language that we can agree on, but we write the document. If that’s acceptable, we can move ahead with your project. If it isn’t, then I suggest we part ways now with no hard feelings.”
You need to set the parameters under which you’re willing to work. I’ve seen a number of contracts written by attorneys over the years. Fair as they may try to be, when it comes to their own project, they’ll tilt the tables in their favor every time and use terms and conditions you’ve probably never seen before.
Estimating Profitably — Ten Tips to Improve Your Estimating Skills
Sign up for our newsletter and start pricing jobs with confidence.
No spam. Unsubscribe anytime.
For example, would you agree to language that states “the contract will match the plans for this job in toto”? Have you ever seen a plan that was drawn perfectly? How can the contract match the plans “in toto”?
Additionally, while they may be an expert on law, they rarely know construction and the problems inherent in our business. And I have yet to meet one who understands the cash flow needs of a construction company. As a result, they’ll include a payment schedule that is guaranteed to cause your company pain.
It shouldn’t be negotiable. It’s your company and you’ll write your own contracts. If they insist, let someone else build their job.
The Bottom Line:
The contractor — every time, no exceptions. Michael Stone gives the exact words to use when a client or their attorney insists on writing it: they can review and suggest changes, but your company writes the document or you part ways. Attorney-written contracts tilt the tables, and their payment schedules will strangle your cash flow.
Related Articles:
Why Do You Need a Written Construction Contract?
A Poorly Written Contract Will Cost You Money
Contract Language That Puts You at Risk
Use the Right Payment Schedule
The knowledge and experience Michael Stone gained in his 60+ years in construction has helped thousands of contractors improve their businesses. He is the author of Markup & Profit Revisited, Profitable Sales, and Estimating Construction Profitably, and is available for one-on-one consultations. More here.
