LEGALLY SPEAKING: Legal Considerations for the Next Generation of Construction Professionals

As a construction law firm we are accustomed to preventing clients’ problems through developing good contracts and implementing better business practices. We are also accustomed to helping solve immediate, critical problems such as payment issues and pending lawsuit claims. But, when it comes down to a better way to prevent problems in the future, how wonderful it would be to work with the newest generation of construction professionals to bring about a significant change in the future of construction.

Imagine a world where there is greater professionalism, fairness, and a desire to work together, thereby creating more efficient projects, increased profitability, and happier employees. And it could happen.

What Young Construction Professionals Can Do to Build Better Construction Contracts

Everyone understands that good, fair contracts improve the likelihood of a project’s success; thus, it is important that the drafter and the client work together to build something “good.” When we sit down with clients to draft their construction contracts, we want to know what that particular client has learned from their boots-on-the-ground experience. We want to know when contracts have been used as leverage against them; we want to know when problems have arisen that were not addressed in the contracts; and we want to know other situations which they have encountered. Who is better to be on the front lines of these experiences than the next generation of project managers and young executives?

Thus, we would encourage each person to keep a journal or log of the issues which they (or their colleagues) experience. There’s now a record of situations that arise which might be preventable. The list could include their experience among different employers, different types of projects, and even their colleagues' experiences. Then, when the next generation become the decision makers, they have a wealth of experience at their fingertips, and they can more easily recall how a contract helped or hindered their performance.

Similarly, each one should journal the successful problem-solving techniques which he or she witnesses on each jobsite by others as well. (Yes, people can learn from the mistakes of others!) Thus, they will begin to develop a sense of practical, problem solving skills for their own tool box as well as to build into their contracts. For example, we recently wrote a contract for an addition to a church. Based upon the project manager’s real-life experience, we added contract language in the Subcontract agreement related to the use of profanity on the job-site, in addition to other provisions which might be especially important for a religious institution which maintains a day-school and counseling programs.

Don’t Underestimate the Next Generation’s Experience

While we are discussing contracts, it is important to point out that some younger professionals bring a significant, current understanding to projects and contracting. In building a solid construction contract, the younger generation tends to be more adept at anticipating issues related to changes within the industry. The use of current software, the availability of tablets and iPads, and the use of drones has built new areas that need to be addressed in the business world, and offer new opportunities for earlier (and easier) problem-solving on a jobsite. This is a great opportunity to involve all levels of management in construction contract drafting.

Everyone Should be Mindful of Methods of Communication

Often construction contracts require specific types of communications and a schedule for meeting milestones or deadlines. In the real world, however, all forms and methods of communication are used almost interchangeably.

Each and every method of communication is useful for one reason or another. However, when a client is involved in litigation, there is nothing more useful to their case than the written word. Even more specifically, our construction litigators constantly wish that all directives, all serious issues, all notices were in letter form on the company’s letterhead. Yes, texting is useful; yes, emailing is useful. However, when it takes a combination of a long text string and, maybe too, an email string (or two!) to show that a change order was authorized, it is difficult and time-consuming for the attorney to convey this to the fact-finder. However, if there is a signed change order, then, viola, fast and easy.

Similarly, when there is a delay and notice is required, texts and most emails are written less formally and with less punctuation and correct grammar. Thus, ripe is the opportunity for confusion or misunderstanding. When a more formal letter is required, most people put more conscious thought into their words and their goals for accomplishing a task. The earlier that a construction professional learns to use letters to document their projects, the easier time they will have "winning" their case.

Now Is a Great Time to Build Strong Relationships

Recently, there was a meme making the rounds on social media which stated, “Your network is your net worth.” Networking is an important aspect of every industry, but an argument could be made that building relationships is absolutely vital to a successful construction career. Everyone you meet brings value to the table, and once a relationship is tarnished, it will never again be as strong.

From the moment that a young construction professional begins the application process with a prospective employer, a relationship begins to form. The hallmarks of first impressions do, indeed, last a lifetime, so never look sloppy, speak ridiculously, or act entitled. As young professionals make their way in a career path, it is advisable that they understand–and exercise–traits which reflect their absolute best. These traits include honesty, taking responsibility, knowing personal limitations (and asking for assistance), respecting others, and, generally, being pleasant. Most everyone has stories as to how past relationships helped (or hurt) them in the future.

Permanently and unwaveringly adopting these principles will build strong relationships; furthermore, holding dear to these values will, simply, help avoid problems in the first place.

A spin on this concept includes the relationships built between owner, developer, design professionals, general contractors, subcontractors, and suppliers. Often suppliers are able to use a credit score as an indicator of a customer’s ability to perform (based upon their past performance). Other tiers in the construction line-up do not have it so easy. Thus, the relationships that are built may be the sole source of predicting future performance. Time and time again, our firm has seen successful projects where the prime contractor and subcontractor have decades of working together in a mutually beneficial relationship. In other words, the Golden Rule works admirably in the field of construction: Treat others as you wish to be treated.

Conclusion:

It is an exciting time to be engaged in construction. Furthermore, since the Great Recession there has been a wonderful influx of new talent, technological innovation, and specialty construction techniques which adds even more excitement. Young talent, now more than ever should seek to combine the best of traditional construction with the best of modern, innovative business.

A leader in Georgia construction law for over 25 years, the Cobb Law Group brings expertise, experience and knowledge to your team. Focusing on project development, construction contracting, construction litigation, and payment issues including materialmen's liens and payment bond claims, our firm understands your goals and needs. For more information, email: mark@ cobblawgroup.net or visit

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