A civil contractor lost $500,000 in change orders because he didn't follow contract terms, and his claim was denied. Subcontractors who rely on handshake deals instead of written contracts are left vulnerable when disputes arise. Proper contracts protect your money.
Chapters
So many subcontractors still rely on handshakes instead of solid contracts because it feels like the old way, the old school way of doing business. But in reality, you're actually handing over control. We had a civil contractor have a claim where they had, you know, $500K in, in changes and they didn't follow the contract. And ultimately, when they went to make the claim, they said you didn't follow the contract and they wouldn't pay them. The idea of having a handshake agreement is the old school way of doing business, and it doesn't really work anymore. When actually comes down to a problem, people just point at the contract. And if you're the type of subcontractor that just accepts the contract you're given, then when that moment comes, which it always eventually does come, you're going to be left holding the baby.