Contractors need to take note of legal issues that arise on account of construction defects and accidents. Further, they need to make sure they are rigidly compliant when it comes to lien waivers. It is important to take their state’s code into account to provide context for the crafting of their performance standards.

Regarding new contractors who have just started their business, Rachel says that they should be clear on the expertise they currently have and what they intend to practice in their new venture, in addition to having their financials sorted out.

Finally, Rachel does a deep dive into the critical importance of insurance and why, in such a high-risk industry as construction, contractors must never overlook the importance of protecting their assets should the slightest cause for liability take place.

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Topics Discussed: 

• [02:14] Issues and trends present in the construction industry today
• [05:00] How contractors are dealing with legal issues today (ex. around price increases)
• [12:26] Considerations around liens
• [16:45] Consulting in different states according to their respective codes
• [21:48] Required contract provisions
• [30:05] Where contractors should focus on when starting a business
• [36:36] The startup manual created by Contractor Training Center for new contractors
• [39:07] What is a “construction bond”?
• [44:48] How a contractor can ensure that they are properly insured
• [51:45] Should owners always have builder’s risk insurance?
• [53:47] Rachel’s custom residential design-build construction business in Florida
• [56:56] How Rachel got involved with Contractor Trainer Center
• [58:29] Resources available on the Contractor Trainer Center website
• [01:01:40] The best advice Rachel has ever been given and what’s next for her

Connect with Guest:

• Website: https://contractortrainingcenter.com/
• LinkedIn (Rachel Doty): https://www.linkedin.com/in/rachel-doty-26844420
• LinkedIn (Contractor Training Center) https://www.linkedin.com/company/contractortraining
• Facebook: https://www.facebook.com/contractortraining
• YouTube: https://www.youtube.com/channel/UC_5LeZU1L4FtfT-ni6UHkcQ

Connect with Brad Leavitt:

• Website - https://www.aftconstructionpodcast.com/
• Instagram - https://instagram.com/aft_construction
• Facebook - https://www.facebook.com/aftconstruction
• Houzz - https://www.houzz.com/pro/aft-construction/aft-construction
• Pinterest - https://www.pinterest.ph/AFT_CONSTRUCTION/
• YouTube - https://www.youtube.com/channel/UCzB4R_DHPVV1SPh7RUfR5jg

Key Quotes by Rachel:

• There are a lot of things to consider when [a contractor] is first starting out. If they haven’t already set up a business, there are a lot of things that they’re going to need to know and figure out before they jump into it: what type of work they’ve been doing and what type of work they want to do.
• As contractors, we have the duty to make sure that our subs and everyone underneath us are operating to our standards, and also to make sure that they have the insurance limits that will cover us.