S2 E39 - Why Most Contractors Get Sued (And How To Avoid It)

In this episode of Beers with Contractors, hosts Will and Terry sit down with Eric Daffern, an attorney specializing in construction law, to explore the intricacies of managing risk and legal pitfalls in the contracting business. Throughout this engaging conversation, Eric shares insights into essential legal practices for contractors, including establishing a robust team of professionals, meticulously crafting contracts, and leveraging the power of mediation. Practical advice on structuring operating agreements, navigating the lien process, and accommodating current industry trends also feature prominently. Additionally, Eric’s decades-long experience and personal anecdotes offer valuable lessons in balancing legal and business considerations to achieve long-term success. 00:00 Trailer 00:41 Guest Introduction: Eric Daffern 03:05 The Importance of Legal Advice 08:12 Setting Up Your Business Structure 19:25 Contracts and Legal Pitfalls 30:54 Understanding Change Orders in Contracts 31:20 The Importance of Written Agreements 32:05 Proactive Contract Management 32:23 Handling Quality Issues and Customer Satisfaction 34:36 Legal vs. Business Decisions in Contracting 35:59 The Role of AI and Online Tools in Contract Creation 38:52 Navigating Insurance and Legal Challenges 41:05 Litigation, Arbitration, and Mediation Explained 47:44 The Importance of Thorough Contracts 49:24 Current Trends and Future Challenges in Construction 50:43 Master Subcontracts and Market Volatility 55:56 Conclusion Contact Eric Daffern at: Website: https://www.daffernlawfirm.com/ Foundation Rescue Supply Link: https://www.foundationrescuesupply.com/ Contractors Kick Ass! Podcast Store Link: https://williamwalkerblake.com/store-1 The Worker Incentive Program that Contractors Love! - Per4mance Software https://per4mance.io - Pay for performance, not hours