The days where a handshake agreement between project owners or general contractors and contractors has come to an end. As profit margins shrink, project owners are looking to take advantage of every opportunity to save money on a project.
That means that contractors need to review their contractors more carefully than ever before and use it as a guide over the course of a project. Unfortunately, many contractors lack the time or the expertise required to fully review a 100 page A.I.A. contract.
That’s why Ox Bonding offers contractors its Client Contract Analysis service.
To help you understand Client Contract Analysis, we’ve provided the answers to some frequently asked questions about the program.
1. What is Client Contract Analysis?
Client Contract Analysis is a complimentary service that is offered as a part of Ox Bonding’s Contractor Credit Program.
Our Client Contractor Analysis service provides contractors with a general review of their project contract by our team of seasoned industry professionals.
Because we know construction, we can help contractors to understand the specific language of their contracts, and provide a guide to how the language can affect them on and off the job site. This helps to improve communication with project owners and general contractors, and also allows them to manage their projects more effectively.
2. How Does It Work?
Once we approve you for a bond, our team will review your fully executed contract and provide insight on any potential issues or red flags before you start work on a project.
We do this by evaluating your contract and highlighting terms and conditions related to:
- Liquidated Damages
- Claims for Change Orders
- Union/Non-Union and Prevailing Wages
Contractors are also made aware of unfair or limiting contract language, so that they can avoid going over the approved budget, facing liquidated damages, or non-payment for services performed.
3. Why Do I Need It?
Paying attention to the terms and conditions of the contract is critical to the success of your project. Unfortunately, even experienced contractors can sometimes miss details that affect their ability to complete the job successfully. Misreading a contract can lead to cost overruns, liquidated damages, and non-payment for services performed. This can lead to liens, lawsuits, or defaulting on bonds.
4. Who Is Performing the Analysis
Our Client Contract Analysis team is made up of industry experts, many of whom have thirty years of experience in the construction industry. These are industry experts who have worked with some of the largest construction firms in the world, as well as smaller contracting businesses.
They know what to look for and can make you aware of potential issues before you start, and at every step of the project.
5. What Does It Cost?
Ox Bonding offers its Client Contract Analysis as a complimentary service for contractors who get bonded through us.
Looking to take advantage of our Client Contract Analysis service? Get a free contract bond quote today, or call (877) 55-THE-OX.