Dr. Adrienne B. Haynes, Esq.,
Contributor

Whether you focus on residential, commercial, or industrial construction, putting expectations in writing is key to developing solid relationships in your business. Business can move at a fast pace, and a contract is the most clear-cut way to make sure all parties have a “meeting of the minds”.
For SEED Law clients, we recommend that every relationship should be documented in writing, and for some, we review every agreement before it is signed. If you’re working with a client, partner, or vendor who you think would be offended by a contract or is unwilling to sign an agreement- run! That can be a hard lesson to learn but wanting a documented relationship should not deter business- in fact, it should do the opposite in good relationships. Putting your understanding in writing minimizes the guess work in conflict, making it easier to make and grow relationships.
When setting up and reviewing your contracts and job site documentation, be thorough:

Know your KEY terms and provisions.
Knowing what to expect before conflict or a triggering event and the solutions and remedies available make it easier to perform in compliance and trust the relationship that’s developing.
Contracts and documentation are important whether your business is typically signing or providing the documentation. In a construction business, there are typically client, vendor, subcontractor and materials agreements and each time you sign or send out another agreement for signature, it should be reviewed for key terms and provisions in advance.
If you’re providing the documentation, implement standard agreements that mirror the way you want to do business and the laws in your state. This is key because some rights, such as mechanics liens, are only preserved if certain notices and specific language is used. If you’re typically signing agreements, make sure you read it before you sign it! Know that it’s ok to make edits and negotiate. You want to make sure it’s written in a way that leads to your success and effective performance. If the timelines or payment terms are unreasonable for you- say something in advance.
The next SEED Law workshop, Contracts in Your Business, will be hosted on Wednesday, July 8th from 12-1 pm on Zoom. This session will provide owners with a legal perspective on how to plan, review and prepare the key documents for your business, including governing documents, vendor agreements, team contracts and more. To register for free and see the full list of virtual and in person events, please visit https://showmenetwork.org/calendar/

Be picky with your partners.
It’s common in construction to partner with other firms to complete the necessary scope of work. This can be done in a variety of ways, and is typically done through partnerships or joint ventures. A joint venture is an association of persons with the intent to engage in and carry out a single business venture for joint profit, for which purpose they combine their efforts, property, money, skills, and knowledge. Little formality is required to establish a joint venture and no specific or all-inclusive agreement need be proved. While partnerships can be imposed by law, courts use a case by case basis to determine the existence of a joint venture. A joint venture cannot be created or imposed by law, but can exist if the relationship is voluntarily assumed or documented in a contract.
If you decide to engage in a joint venture, make clear the scope and duration of the project, how the money will be handled, and the contributions, rights, and responsibilities of each party.

Document the job site.
Regardless of your scope of work, documenting what happens on the job site is essential in proper contract and record keeping. This documentation may include standard forms to track incidents, weather, work performed, safety topics, problems and delays, employee conflict, equipment usage, materials purchased, and other general management notes. When documenting your relationships and job sites, prepare a record with any understandings that may need to be later shared with your professional team or read out loud to a judge or jury in a court of law.
If the commercial project you’re working on requires prevailing wages, understand your obligations and reporting requirements. Prevailing Wage Laws establish a minimum wage rate that must be paid to workers on public works construction projects constructed by or on behalf of state and local public bodies, such as bridges, roads, and government buildings. The prevailing wage rate differs by county and for different scopes of work and must be strictly adhered to. Prevailing wage compliance requires an understanding of the Wage Order, specific record keeping to prepare the certified payroll forms, and ongoing compliance in case of on-site interviews or a payroll review and comparison.
Lastly, even when you have all of your “i’s dotted and t’s crossed”, it’s important to have your agreements reviewed every 2–3 years to ensure that they are still consistent with the law and with the way you want to do business.
This article is an overview of contract and job site considerations, including governing documentation and key terms, and does not cover every legal right or obligation, consideration, exception, or restriction. These documentations and decisions are complex and should be well researched and discussed with a legal professional before being made.

Thanks for reading! My name is Dr. Adrienne B. Haynes and I’m an entrepreneur and attorney based here in Kansas City. My law firm, SEED Law, has been partnering with business owners across the Northeast and the city for almost 11 years. I loved living in the Northeast and I was fortunate to serve as an Entrepreneur in Residence for the Kauffman Foundation in 2017. Together with a dedicated group of Northeast residents and leaders, we explored a community designed innovation district pilot program. I was able to present this work during a TEDxUMKC Talk on Community Innovation Design in 2020. If you have questions, please reach out directly at
adrienne@seed.legal.