Date Published: October 2, 2023

There is good and not so good in everything and that includes owners of construction projects. If you are a sub contractor, some general contractors may fall into the not so good category. A bad owner at best can squeeze margins and at worst can cause irreparable harm to your company. So how can you protect yourself when entering into a construction contract with a bad owner.

There are a few things you can do to prevent entering into a construction contract with a bad owner:

  • Do your research. Before you sign any contract, it’s important to learn as much as you can about the owner. Ask around for references and check online reviews. If you can, talk to other contractors who have workedprotect yourself when entering into a construction contract with a bad owner with the owner in the past.
  • Get everything in writing. Once you’ve decided to work with an owner, make sure to get everything in writing, including the scope of work, the timeline, the budget, and the payment terms. This will help to protect you in case there are any disagreements down the road.
  • Use a standard contract. There are a number of standard construction contracts available online and from industry organizations. These contracts have been reviewed by lawyers and should protect both you and the owner.
  • Be wary of red flags. There are a few red flags that should indicate to you that an owner may be difficult to work with. For example, if the owner is unwilling to sign a contract, or if they are constantly changing the scope of work, these are signs that you may want to reconsider working with them.

Here are some additional tips:

  • Trust your gut. If you have a bad feeling about a particular owner, it’s probably best to listen to your gut. There are plenty of other owners out there who will be easier to work with.
  • Don’t be afraid to walk away. If you’re not happy with the terms of the contract, or if you’re having reservations about the owner, don’t be afraid to walk away. It’s better to be safe than sorry.

If you do find yourself in a situation where you’re working with a bad owner, it’s important to document everything and to communicate with them in writing. If you’re having trouble coming to an agreement, you may want to consider mediation or arbitration.

Remember, you deserve to be treated with respect and to be paid fairly for your work. If you’re not getting that from an owner, finish the contract and move on.

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier provider of construction related surety bonds nationwide, since 2003.

Performance and Payment Bond Underwriting Blogs.

Oregon contractor license bonds are increasing by $5,000

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

Get started with the bond application process today.

Most bonds are fully processed within 1-2 business days. In some cases, you'll hear back from Surety1 within hours!