Does Your Construction Contract Protect Your Payment Rights? Part 2
In part one of this two-part article, we discussed how contract provisions can have a significant impact on your right to pursue payment on a construction project. Below, we continue our discussion by covering delays and North Carolina retainage laws. As a contractor, you must be aware of not only provisions related to payment but also all terms within your contract. Failure to review your contracts could result in a costly dispute. If you are ever in doubt, an Asheville construction lawyer from Cotney Attorneys & Consultants is standing by.
As we’ve covered previously, your contract should have a delay provision. These provisions will likely result in a tug of war between you and an owner over what constitutes a compensable delay. Owners will always try to include provisions that limit time extensions and additional payments. Delays can lead to costly disputes, which is why it’s important to get this right while negotiating contract terms. Try to mitigate delays by ensuring that the project schedule allows time for unforeseen problems. Above all else, always ensure that your contract guarantees that you will be compensated for the services you provide on delayed projects.
Retainage is a set payment amount that an owner is permitted to withhold to ensure project completion. Each state has its own laws pertaining to retainage. While this amount is normally around 10 percent, North Carolina limits retainage to five percent on public projects that exceed $100,000. However, there are currently no statutes that pertain to retainage limits or recovery on private projects. It is imperative that you pay particular attention to retainage provisions when negotiating with a private owner. To be absolutely certain that your payment rights are protected, consult an Asheville construction attorney to have your contract reviewed and redrafted if necessary.
An Affordable Alternative for Contract Review
The construction contract is your greatest shield and most powerful weapon in a payment dispute. It stipulates not only when payment is to be received but also if payment can be recovered. For this reason, you must always be keenly aware of the contents of any contract you sign.
Having a single contract reviewed by an attorney will normally cost close to a thousand dollars. When you take into account the other legal expenses that you may require over the course of a project, it may seem like partnering with an attorney is out of the question. That is why, at Cotney Attorneys & Consultants, we’ve developed subscription plans that allow contractors to benefit from unlimited contract review, among other services, for one low monthly price. If you are already spending a fortune to have your contracts reviewed, you stand to benefit from the slew of additional legal services we provide for the same price. For expert contract drafting and reviewing at an affordable rate, contact an Asheville contractor attorney from Cotney Attorneys & Consultants.
If you would like to speak with an Asheville contractor lawyer, please contact us today
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.