My recommendation is to buy David Gerstels book “Running a Successful Construction Company “ and read it twice or three times.
David Gerstel was a remodeling contractor, but the basic business information applies to any type of contractor, and he ran his business in the Bay Area.
Then write up a Contract with what your business requires for situations you have encountered, after reading the mandatory requirements on the CSLB website.
Then take that draft to a competent attorney who specializes in construction law. I can’t emphasize that enough. A good business attorney who is not fluent in construction law will be a waste of time and money.
Here are two clauses in my contract, one regarding scheduling, and one regarding change orders.
Terms and Conditions is a whole ‘nother thing from a change order arising from unforeseen conditions. You should not conflate the two.
And I don’t recommend you just copy and paste this into your contract, it’s just an idea, that may or may not work for you.
NOTE: Estimated start date is subject to change, and Contractor will coordinate actual start date with Owner. Contractor agrees to notify customer of any projected delays in estimated start date.
Contractor will not be responsible for delays beyond Contractors control, including but not limited to: Adverse weather; Acts of God, i.e., Earthquakes, floods, storms, etc.; Strikes, riots or other civil commotions; Delays by Authority Having Jurisdiction in issuing permits, or providing inspections; Injury or sickness in key Employees or Sub- Contractors; Delays in obtaining materials that Contractor could not have reasonably foreseen; Supply-chain issues; Labor shortages; Failure of Owner to make timely progress payments, or design decisions and selections; Changes in work arising from Owner-initiated Change Orders, or Change Orders arising from unforeseen conditions
Change Orders
When it is necessary to make a change in the work during the Project, the change will be written up on a Change Order Form. After signing, it is incorporated into the Contract, and is subject to the Terms and Conditions of the Original Contract. All Change Orders will be payed for at the time the Change is completed.
Changes may be required for reasons including, but not limited to, the following:
Sub-surface conditions;
Conditions below grade requiring extra effort to accomplish excavation or site work. For example, Boulders, tree roots, sub- surface water flows, or topsoil to a depth beyond estimated (if no soils report)
Hidden conditions; Sub-standard and/or deteriorated Mechanical, Electrical, Plumbing, or Structural conditions behind and/or below finished surfaces. For example, Rotted framing, undersized electrical, failed piping
Conditions requiring further work, but that Contractor is unable to determine prior to removing finishes, or that Contractor could not have reasonable foreseen
Changes desired by Owner
In the event that Contractor provides a bid before Stamped and Approved Plans and Specifications are issued by the Authority Having Jurisdiction, any changes required by said Authority Having Jurisdiction
Change Order Preparation fee is $150
