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.