Now’s the Time to Re-evaluate Your Business Needs

Original post by Ian P. Faria & Jon Paul Hoelscher of Coats | Rose | Yale | Ryman | Lee, A Professional Corporation featured in The Metropolitan Builder, a Texas publication

With the start of the New Year, now is the time to reexamine your business goals for the upcoming months. In addition to getting familiar with any new pieces of legislation that have been passed in your state that will directly impact the construction industry, contractors, builders and suppliers should make sure all contracts and insurance policies are current. You can rest assured American eBuilder is providing you with the most up-to-date warranty in compliance with applicable regulations.

New home under construction, in the framing stage.

Think of it as a clean sweep to start the year off on the right foot and make sure your business is 100% protected and ready to thrive. A small time investment now will save you a big headache down the road. Here are the key areas you should be paying attention to:

Insurance Coverage

Insurance is something we all need, but hope to never have to use. Depending on your business’s size and responsibilities, you can shop around for a number of different polices in varying price points. A general liability policy may or may not be enough.

If you manage employees, it might be a good option to price out a workers’ compensation policy in the event someone gets hurt. If employees are driving to and from job sites, certain automobile insurance might also be required by law. Have an agent look over your policy to find out if your coverage is on target, and be sure to touch base with your accountant to find out if your money is being spent wisely with your current insurance provider.

Contract Conundrum

A contract is hardly a once-and-done venture. Contracts should be living, breathing documents that are constantly evolving based on the ever-changing construction industry. Terms of agreements can change, as can legislation, so it’s important to review what you have in writing on a regular basis. You can minimize your risks and losses by keeping updated contracts on file – even with long-standing clients.

Certain clauses within your contract are more likely to change than others. Here are a few to examine sooner rather than later to ensure the proper parties are held responsible in the event of an issue before, during or after a build: payment, workplace safety, building and performance standards, indemnity and additional insured endorsement.

An experienced attorney or legal team can help make the correct provisions to your contract to help it weather whatever changes happen in the coming business year.

Changing Legislation

It’s hard to stay on top of the complicated legal side of the construction business. Headlines and newscasts can be confusing and often leave you scratching your head about whether certain legislation has a direct impact on your business.

For example, in some states, recently passed laws enforce strict provisions on how work is done in areas affected by a natural disaster. Other states have seen legislation handed down regarding retainage and the timeline of how to place a lien on a property.

To ensure that your business is operating within the correct state, county or township legal parameters, rely on a trusted attorney or legal team. It will be their job stay current on all industry changes and alert you of anything that will affect your business and bottom line.