In this month’s issue, we focus on the critical importance of understanding contract language and how we, as leaders, can better explain the “why” behind it. Understanding contracts is imperative to protecting ourselves, our projects and our people.
Seasoned professionals must ensure that the newer generation grasps the importance of understanding contract language. They should also encourage them to ask questions to fully comprehend legal terms and see the big picture in case issues arise down the road.
Knowledge of contract language empowers early-career individuals, enabling them to make informed decisions, assert their rights and hold others accountable throughout the process. Issues such as late payments or work-related problems, such as water intrusion, could have significant consequences if not properly addressed in the contract language. Leaders should not wait for problems to arise before showing the next generation the importance of precise wording.
Understanding contract language also helps avoid legal pitfalls. Contracts are legally binding, and ignorance of their terms is not a defense in court. Misunderstanding or overlooking certain clauses can lead to disputes, financial losses or legal troubles. By comprehending contract language, early-career professionals can negotiate better terms, protect their interests and understand the significance of what they are signing.
In my experience, certain language disagreements with clients have been deal breakers but have ultimately protected our people, projects and company.
To help new employees understand what wording is important, some major contractors provide sample contracts highlighting language that makes a solid contract and language that can cause issues. Educational seminars hosted by associations such as AWCI and by legal experts can also be invaluable in explaining contract details. AWCI is a founding member of ConsensusDocs, which publishes a comprehensive catalog of more than 100 documents that cover all your contract needs. ConsensusDocs are the only standard contracts developed by a diverse coalition of more than 40 leading associations, with members from all stakeholders in the design and the construction industry. Visit the www.consensusdocs.org to view the entire catalog. Make sure to use the AWCI coupon code: ukek4wc7.
It is always better to train people on contract language beforehand. If the general contractor (GC) is rigid on language you are not happy with, sometimes it is better to walk away as friends, knowing you can always work with that GC another day.
Contracts are not just legal obligations; they foster collaboration and communication between parties, help generate revenue and increase overall operational efficiency. They are an extension of a company’s brand and values and are protection for your people and your projects.
Until next time, I hope you all have a productive month and continue to prioritize safety.
In addition to being 2024–2025 president of the Association of the Wall and Ceiling Industry, Johnny Barnes is principal at TriCoast Building Group LLC in Gainesville, Florida.
