Navigating Risks in Construction Projects ft. Seth Tandett Pt. 1 [#ThrowbackThursday] | Ep. 429

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This episode is a re-run. It was originally published in May 2023.

What happens if your head contractor stops paying you next month?

If you read your termination clause, the answer might be "nothing." They can terminate you for convenience. You can't terminate them at all.

So you keep working. Keep spending. Keep hoping. While the rumours about their cashflow get louder.

That's the trap most subs don't see until they're in it.

Listen to the full episode now.

Timestamps:

(5:28) - The worst contract in the whole chain goes to the guy that hasn't got the resources to deal with

(5:44) - That is probably the systemic issue in the construction industry where so many subcontractors actually don't understand how to negotiate and they don't understand what to negotiate either

(8:15) - Successful companies in construction have a long-term view

(12:18) - You got to look at your local laws as far as payment terms and things like that because you can leverage those laws on your behalf

(14:28) - Whatever you prefer to put up as security, you want to make sure it's tied to your own specific contract and not to the head contract

DISCLAIMER: The content of this podcast does not constitute legal advice, is not intended to be a substitute for legal advice, and can not be relied upon as such. You should seek legal advice or other professional advice in relation to any matters you or your business may have.