Commercial Construction Contracts: No Schedule? Big Potential Problem!
You’ve heard the phrase “time is money.”
Well, if you’re a subcontractor, a common contract mistake can cost you both.
Whenever you bid on a job, part of your price will be based on the amount of time required to perform the work. Man hours, equipment time, sequencing with other tasks or scopes of work – there’s a cost associated with all of it.
So: You documented “how much” time in your bid.
But did you also consider “by when…”
…and “in what order”?
If not, you could have a serious problem on your hands.
Pretty much any large-scale construction project needs to happen in a certain sequence: *this*, then *this*, and finally *that*.
For example, if you’re a commercial plumber, you might need to install a pipe in the northeast corner of the first floor before you can start work in the southeast corner of the second floor.
Or maybe there’s a dependency. For example, if you’re an HVAC subcontractor and you can’t install a unit until the concrete guy has poured the pad where it will sit.
Your Subcontract should have a baseline schedule containing these details. At a minimum, the schedule needs to document the time conditions under which you bid this job.
Without such a schedule, you have nothing you can use to make a claim that a delay, disruption, or change in the order of operation is costing you dollars that should be repaid.
In fact, some subcontracts will state that a general contractor has the right to change the schedule and/or sequencing of your work without any additional compensation.
And in Ohio, the language that two businesses choose to use within a contract is generally enforceable.
Don’t get stuck waiting on a job — or at least make sure you receive proper compensation if you do. A baseline schedule can help protect you if (or rather, when) unexpected delays come up.
If you’d like help with your commercial construction contract, fill out our contact Contact Us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members. You can also find more related information in our Guide to Avoiding Commercial Construction Contract Nightmares.
