Get It in Writing

Scott Wohl of the Builder's Assocation of the Hudson Valley wrote a great article in today's Times Herald Record discussing the warning signs of unscrupulous building contractors and how to protect yourself.  (See link below) I think his most important piece of advice is to get a written contract.  This advice applies extends far beyond the construction industry and applies to any business relationships. 

It is important that the contract describe the scope of work, the cost, and provide a discussion of what happens should something go wrong.  The contract provides a rule book during the course of the business relationship and should things go awry, a judge can interpret that rule book in court. 

Here are some examples of why a contract is so important. 

My client Jane Doe comes to me with a simple contract that reads to the effect:

John Builder agrees to build a deck for $10,000 for Jane Doe at 123 Main Street.  20 percent down with the rest upon completion. 

This simplistic contract fails to address a number of critical items such as the quality of the deck, the materials to be used, and the size.  Is there a completion date?  Are there rules regarding where the workers should store there materials?  Is a building permit required?  Who is responsible for obtaining that building permit?  More importantly, this contract fails to identify what happens if something goes wrong or if one party fails to perform.  Who is entitled to what? 

Another common occurence is when a client comes into my office and hands me the simplistic contract described above and says to me, "Well John Builder told me that he would use composite decking but he used scrap lumber instead."  Because the term composite decking is not in the written contract or in a written contract modification (aka a change order), it becomes very difficult to enforce.   It becomes a he said vs. she said in court.  Had the contract specified composite decking as the required material, John Builder would be in breach of contract and the homeowner would have been entitled to some level of damages. 

Lastly, I have had a number of clients who did not get a contract when doing business with family friends because they trusted them.  If they are truly your friend, they will provide a detailed written contract so that the rights and obligations of both sides are clearly spelled out and expectations are clear.   

Guest Columnist: Warning signs you should try to keep in mind | recordonline.com

This is not intended to be legal advice or establish an attorney client relationship.  Should you have a legal matter that you wish to discuss with Elizabeth K. Cassidy, please contact her office at 845-981-7223