James Rudnicki is a Texas attorney specializing in home building. He actually *wrote* the contracts for the Texas Association of Builders. Bottom line…he knows his stuff, probably as well as anyone. And when it comes to risk management, we can always learn a little more. Enjoy this conversation as we explore contracts, warranty liability, and lien waivers. You will learn a lot, but please don’t do anything without consulting your own attorney.
2:10 – Cost Plus vs. Fixed Price contracts…What James prefers.
5:50 – The importance of a Builder’s Services Agreement.
6:50 – Protecting yourself against price increases in Fixed Price contracts.
11:45 – Protecting against client onset delays.
15:45 – Pricing change orders.
16:10 – On the necessity of signing change orders up front.
19:50 – Fixed schedule milestone draws vs. periodic progress draws.
21:10 – The ins and outs of retainage and why you should avoid it.
27:00 – On managing warranty liability.
28:15 – On third party warranties.
30:40 – The warranty standards you need to follow.
34:25 – The low-down on lien waivers.