Many contracts are impenetrable with their fine print, multiple pages and complicated language. What is a subcontractor to do? At the very least, smaller construction firms should focus on those areas where a mistake could be costly and exposure is likely.
Most business dealings have traditionally been supported by guaranty agreements; however, recent economic challenges are regularly testing the validity and enforceability of such promises. With defaults running rampant on all fronts, severely impacting global financial markets, it is clear that a better understanding of these instruments is in order.
It is not uncommon in the construction industry for parties to exchange and revise drafts of written contracts before agreeing on a final version. In some instances, the demands of … Read More