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Should you sign a subcontract you don’t understand?
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Mastering the Subcontract Course

1. THE BID

Your bid is a detailed explanation of the work you agreed to provide, but it does not become part of your subcontract.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Itemized Bid Form
  • Bid Restriction Paragraph
  • Review Questions and Answers
2. THE SUBCONTRACT DOCUMENTS

The subcontract is not the only document that describes what your obligations to the general contractor are.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Language You Can Use to Get the Benefit of the Prime Contract
  • Letter to General Contractor Requesting Copy of the Prime Contract
  • Review Questions and Answers
3. SUBCONTRACTOR BONDS

DANGER, DANGER, DANGER 

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter in Response to a Claim on Your Bond
  • Letter to General Contractor Requesting Copy of Bond
  • Response to Claim Letter
  • Review Questions and Answers
4. SCOPE OF WORK
The scope of work described in the subcontract is not the same as what was in your bid, review the scope documents in the proposed subcontract as if you were reviewing a new project to bid.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter to General Contractor Requesting Additional Funds Due to Scope Being Larger/Different Than Bid
  • Review Questions and Answers
5. DO NOT SIGN A PERSONAL GUARANTEE

The importance of being incorporated and not signing the personal guarantee.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter Responding to a Request for a Personal Guarantee
  • Review Questions and Answers
6. FIELD CONDITIONS / PRIOR WORK

These sneaky provisions need to be considered and negotiated before you sign the subcontract.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Field Conditions Check List
  • Letter to GC About Issues with Prior Work
  • Review Questions and Answers
7. SUBMITTALS / AS BUILTS

These are helpful tools that are required by most subcontracts and they can actually help limit your liability should something go wrong.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Submittal Form
  • As Built Transmittal Letter
  • Review Questions and Answers
8. DAILY REPORTS

These are great tools to tell your side of the story if there are any issues. 

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Daily Report Form
  • Review Questions and Answers
9. PAY WHEN PAID CLAUSES

Understand what a pay when paid clause is and how to defeat them.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Escape Clause Letter
  • Review Questions and Answers
10. RETAINAGE

What retainage is and why it matters.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Intent to Lien/Demand for Payment of Retainage
  • Tips and Tricks to Find Out Who the Owner of the Project Is
  • Review Questions and Answers
11. WHEN CAN I FILE A LIEN?

No matter what the subcontract says, you always have the right to file a lien, but you must follow the proper procedure. 

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Lien Timelines
  • Review Questions and Answers
12. LIEN WAIVERS

There is a state form and process for lien waivers. Never sign an unconditional waiver if you have not been paid.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Copies of all 4 Texas Lien Waivers
  • Letter Explaining Why You Cannot Sign an Unconditional Waiver
  • Review Questions and Answers
13. CONSTRUCTION TRUST FUNDS

Trust funds are the payments on construction projects, and they must be paid to the people who supply labor and material to the project.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Trust Fund Flow Chart
  • Letter in Response to Trust Fund Claim
  • Review Questions and Answers
14. CHANGE ORDERS

Don’t work for free, make sure you have a signed change order before you do any extra work.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Change Order Form
  • Letter Requesting a Written Change Order
  • Letter Disputing Back Charge
  • Review Questions and Answers
15. ASSIGNMENTS

There are two different types of assignments, understand what they are and why they matter to you.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Letter Responding to a Notice Default Due to Sale/Factoring of Invoice or Pay Application
  • Review Questions and Answers
16. DELAY DAMAGES

The schedule you provide will be used against you, understanding how dangerous being behind schedule really is.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter in Response to Delay Damages Claim
  • Letter Revising Schedule Due to Increased Time for Change Order
  • Letter Requesting Additional Time to Be Added to the Schedule
  • Review Questions and Answers
17. WARRANTIES

Know where to find all the terms of the warranty you are agreeing to and how to negotiate these terms.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Warranty Form with Nonpayment Restriction
  • Response to Warranty Claim Letters:
    • Outside Time Frame
    • Not Covered by Warranty
    • Haven’t Been Paid
  • Review Questions and Answers
18. TERMINATION / DEFAULT

What is considered a default, how it can be cured and who has the right to terminate the contract and for what grounds.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter in Response to Notice of Default
  • Letter in Response to Notice of Termination
  • Review Questions and Answers
19. ATTORNEY FEES & COSTS

Love us or hate us, you need to make sure this is properly addressed in your subcontract.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Examples
  • Letter Requesting Reimbursement of Attorney Fees
  • Demand for Payment Letter & Presentment Letter
  • Review Questions and Answers
20. DISPUTE RESOLUTION

Understand the difference between mediation, arbitration and litigation. Evaluate the pros and cons for each.

  • Video Worksheet
  • Chapter from Quit Getting Screwed
  • Demand for Mediation Letter
  • Offer of Settlement
  • Settlement Agreement and Mutual Release

Review Questions and Answers