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Before You Sign That Contract (Part 1)Crucial Information to Know before Signing your Name.
Before You Sign That Contract...
Copyright © C. S. McMinn 2006
(Excerps from "Understanding Contract Clauses" by C. S. McMinn.)
DISCLAIMER: Nothing contained in this article is presented as legal advice. We strongly recommend you have all contracts and legal documents reviewed by a competent, state-registered attorney. The ideas and suggestions contained herein are presented as advice only and are not to be used in any legally binding format, document or contract.
It's been said, the weakest ink is more powerful than the strongest memory. Inevitably, when you prepare to start any construction project, at some point, you will run into misunderstandings. The clarity of your written agreements– what we loosely call the contract– will dramatically reduce these potential conflicts. The purpose of this article (and the book it draws from) is to help you understand the often confusing world of construction contracts. By applying the insights which follow, and using our examples, you can attain clarity and cost savings, regardless of whatever construction contracts you may encounter...
A contract is simply an agreement between two parties to perform a given service for some reward. Contracts can be verbal, or written. For very small projects, verbal agreements can work. To the drifter who asked if he could earn a little money painting, a homeowner replied: “Why don’t you paint the porch? You’ll find a can of white paint and some brushes behind the garage.” An hour later, he stuck his head through the back door. “I’m done!” he said, proudly.
“Already?” said the homeowner. “Boy, you are quick!” She gave him some food and a ten dollar bill. As he was leaving he yelled out his thanks and then added this last comment: “By the way, it wasn’t a Porsche, it was a Mercedes!”
Moral: even the simplest verbal agreements come unstuck. At the same time, when we draw up a three page contract for a replacement back door, we’re concerned the carpenter will think we doubt his integrity.
That’s why great plans are so valuable. Even without a contract, excellent plans eliminate a lot of potential confusion. If you’ve read our main manual “Radical Cost Saving Strategies to Build Your Dream,” You will know how much we emphasize this point.
Many people are intimidated by contracts. All that confusing legal jargon stirs up the fear of legal conflict. We’ve all heard nightmare stories about lawsuits, but a good contract serves to prevent the likelihood of litigation, simply because it spells out the basics in clear language.
We’ll go into more detail in part 2 of this article... |
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