Business Building: Perform Paperwork Promptly To Protect Profits!

Words: George Hedley

Construction is a high-stakes business filled with endless problems and moving parts, including schedules, changes, labor problems, weather, deliveries, and tight budgets. With so many factors outside your control, the last place you can afford to be sloppy is your contract. Yet time and again, contractors discover at closeout, when it’s too late, that ignoring paperwork and contract terms has cost them dearly.

Why Contracts Matter
A construction contract is more than a formality - it’s the foundation of every project. Your contract defines the rules, responsibilities, scope, timing, and process for handling the unexpected. Poorly managed, ambiguous, or overlooked contracts fuel disputes, unapproved changes, missed payments, and lost profits. Often, half of all project profits are determined by how well a company manages its contract. Many contractors still sign lengthy agreements, often customer-drafted, without carefully reading or understanding notice, documentation, or change order requirements. That’s how rights and revenue get lost.

The Most Important Word: NOTICE
“Notice” provisions specify exactly when and how you must inform the other party about changes, delays, or issues in writing, within a set number of days. Miss one notice deadline, and you may forfeit the right to additional time or money. Before starting work, develop a Notice & Documentation Chart tailored to your specific contract. Share it with your whole project team. Missing or a late notice can cost you the claim, no matter how valid it is.

Sample - Notice & Documentation Chart:
Description - Written Notice Required:
Changes In the Work - Within 7 days of awareness
Differing Field Conditions - Within 3 days of awareness
Plan Conflicts & Omissions - Within 7 days of awareness
Delay Requests - Within 10 days of occurrence
Change Order Request - Within 14 days of the change notice
Claims & Protests - Within 14 days after request
Submittal Approvals - Within 7 days after submittal
Request For Information - Within 5 days after the request
Payment Issues - Within 10 days of the problem
Schedule Updates - Monthly updates required

W.I.N. – Write It Now! = No Verbal Agreements!
Phone calls and verbal conversations don’t hold up well in disputes. “W.I.N.” means “Write It Now!” Put every request, change, agreement, or problem in writing immediately and send it to your customer. Another rule: “No V.A.’s” = No Verbal Agreements! Verbal promises aren’t often enforceable, as parties can conveniently forget all the facts. Summarize every conversation in writing and email it the same day. Proper documentation is mandatory for change orders, schedule changes, delays, and claims. All too often, legitimate claims for extra work, time, or money are denied simply because they weren’t documented or submitted within the required timeframes. Lack of backup, such as signed daily reports or supplier invoices, can leave you empty-handed even if the work was done.

Real-World Lessons - When Contracts Count
On a recent project, a contractor submitted multiple late change order requests with no backup, labor tickets, or supplier invoices. The contract clearly required prompt, documented submissions, of which none were provided. When pressed, the contractor referenced “good faith,” prior conversations, and what he felt was “fair.” But without documentation and timely notice, these requests were denied. Material price escalation is another common issue. If contract prices rise, most agreements demand that you provide written notice and invoices within a set window. Late requests, lump-sum demands without full breakdowns, or appeals to fairness won’t cut it. Contracts often state that price increases are not reimbursable without prior written agreement.

Best Practices To Protect Your Profit
Read Every Contract: Don’t rush and understand every clause, especially notice, change order, and claims sections. Consult an attorney if necessary.
Create a Notice Chart: List all contract notice requirements by event and deadline for each project.
Document Everything: Immediately put all agreements and event details in writing. Use emails, letters, and official forms.
Provide Backup: Attach signed daily tickets, photos, timecards, and invoices to every change order or claim.
Train Your Team: Make sure every supervisor and project administrator understands contract requirements.
Meet Regularly: Review contract terms, deadlines, and outstanding notices in every project meeting, including job kickoff.

The Payoff - Fewer Disputes and Stronger Projects
Good contract management is the backbone of profitable construction. When paperwork is up to date, roles and responsibilities are clear, and your team is trained to follow procedures, you get:
Reduced conflict: Disputes are settled with reference to clear and written terms, versus memory or handshakes.
Better cash flow: Timely billing and payment are supported by executed paperwork.
Improved trust: Clients and partners respect companies that play by the rules and honor their contract,s and perform the paperwork.

You can’t control every variable in construction, but you can control your contract practices. To get a copy of ‘Contract Clauses For Contractors,’ email GH@HardhatBizcoach.com. Be thorough, put everything in writing, meet your deadlines, and make documentation a habit from day one. That’s how you protect your hard work and your profit. Remember: The project isn’t finished until the paperwork is done. Know your contract, document your work, and always, always “Write It Now!”

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ABOUT THE AUTHOR
George Hedley CPBC is a certified professional construction business coach, consultant, and speaker, He shows contractors how to double their profits, grow, get organized, and turn their companies into BIZ-BUILDERS and Profit-Makers! He is the author of “Turn Your Construction Business Into A Profit-Making Machine!” available on Amazon.com. To talk, start a personalized coaching program, or get his free e-newsletter email GH@HardhatBizcoach.com. Visit his YouTube channel to watch his videos. To download online courses or get his contractor templates visit: https://constructionbusinesscoaching.com.

Business Building: Perform Paperwork Promptly To Protect Profits!

About: Business Building

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