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Protect Yourself
 A vendor who
controls the contract also controls the bottom line. That's an accepted fact in
nearly all industries. Buy a set of tires or a kitchen appliance or take your car
to the dealer for service and you'll be handed a document to sign (a contract). Vendors
know that contracts offer protection. What's true for a tire company or an appliance
retailer is just as true for a construction contractor. You need the same protection. And
the best way to get that protection is with an enforceable contract. Most experienced
construction contractors (and every lawyer) will agree: Work under a contract that protects
your interests.
Don't get caught with a defective contract. When a job goes bad, you need a great contract. A
defect anywhere in the agreement gives the attorney for your client a perfect excuse to
withhold final payment. Under Illinois law, the contractor, not the owner, is responsible for
every defect in a home improvement contract. Sign a boilerplate agreement, such as an A.I.A.
form, and your right to do business in Illinois could be suspended -- 815 Illinois Compiled
Statutes 505/2Q(c). The fine for using a defective contract can run up to $50,000. Section
505/7(c). Even if you escape a fine, your client can sue to recover any loss and collect punitive
damages, attorney fees and court costs. Section 505/10a. That's an expensive lesson in Illinois
construction contract law.
Obviously, you've got a major advantage when:
- The contract complies completely with Illinois law, and
- The printed contract looks highly professional, and
- Contract revisions are quick and easy (if required), and
- You can deliver a contract almost instantly by email, and
- You deliver contracts in a format that can't be easily changed.
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