{"id":891666,"date":"2017-02-23T12:10:21","date_gmt":"2017-02-23T19:10:21","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=891666"},"modified":"2017-02-23T12:10:21","modified_gmt":"2017-02-23T19:10:21","slug":"construction-contracts-pay-attention-preamble","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contracts-pay-attention-preamble\/","title":{"rendered":"Construction Contracts: Pay Attention to the Preamble"},"content":{"rendered":"<p>Alexander Barthet | Sage Construction and Real Estate | February 16, 2017<\/p>\n<p>I recently filed a lawsuit on behalf of a subcontractor who hadn\u2019t been paid. The prime contractor named in the suit countered, saying that the company name listed in the contract\u2019s preamble wasn\u2019t the right company. When we looked into it, we found that the prime contractor had three nearly identical names, and the proper entity wasn\u2019t the one listed in the contract\u2019s preamble.<\/p>\n<p><strong>Pro-tip:<\/strong> You can usually verify company names by checking with your state\u2019s online business registry. Florida, for example, provides an easy way to search business records on its <a href=\"http:\/\/dos.myflorida.com\/sunbiz\/\" target=\"_blank\">Sunbiz.org<\/a> site.<\/p>\n<p>When you\u2019re dealing with contracts that can be 15 to 80 pages long, company names and other information in the preamble may seem minor in comparison to other terms and provisions in the contract. But like any part of a legal document, a preamble\u2019s significance shouldn\u2019t be overlooked.<\/p>\n<p>A preamble is a short explanation of the contract usually, but not always, found on the document\u2019s first page. It typically includes:<\/p>\n<ul>\n<li>Name and address of the project<\/li>\n<li>Name and address of the project owner<\/li>\n<li>Name of the design professional, if applicable<\/li>\n<li>Short description of the work, such as electrical contracting or construction management (A more detailed description of the work will go into the contract\u2019s scope of work section.)<\/li>\n<li>Overall price<\/li>\n<li>Start and end dates of the work<\/li>\n<li>Retainage amount<\/li>\n<\/ul>\n<p>A preamble will also include whether you are required to furnish a bond. When working with subcontractors, I\u2019ve often been surprised at how many don\u2019t know if the prime contractor also has provided a bond. If you are a subcontractor, this is important to know if you want to assure you will get paid. Also, if you provide a bond and the prime contractor doesn\u2019t, it can create a tremendous amount of risk for you as a subcontractor if something goes wrong.<\/p>\n<p>Correctly executed contracts set the stage for a project\u2019s success while protecting your company\u2019s rights. \u00a0Start your contract due diligence from the very beginning with the preamble.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alexander Barthet | Sage Construction and Real Estate | February 16, 2017 I recently filed a lawsuit on behalf of a subcontractor who hadn\u2019t been paid. The prime contractor named in the suit countered, saying that the company name listed in the contract\u2019s preamble wasn\u2019t the right company. When we looked into it, we found&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contracts-pay-attention-preamble\/\">Continue reading <span class=\"screen-reader-text\">Construction Contracts: Pay Attention to the Preamble<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,72,9909],"class_list":["post-891666","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contracts-2","tag-preamble","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Construction Contracts: Pay Attention to the Preamble - Advise &amp; 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