A construction contract isn't just a receipt. It's a roadmap for a lawsuit. Here are 5 clauses that bad contractors use to trap homeowners.
1. The "Mechanic's Lien" Waiver (Missing)
If your contractor doesn't pay his subcontractors, they can put a lien on YOUR house. You could pay twice. Demand a "Lien Waiver" clause.
2. "Binding Arbitration" Only
This often means you waive your right to sue in court. Arbitration is private and can favor the contractor.
3. No "Time is of the Essence" Clause
Without a defined end date, your 3-month project can legally drag on for 9 months.
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Audit my contract for risk →4. The "Cost-Plus" Trap
Also known as "Time and Materials." This gives the contractor a blank check. If they work slower, they get paid more.
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