5 essential document contractors need (to do everything by the book)
Construction contracting can be good, steady work. However, the ones who don’t find success in construction are typically those who fail to do everything by the book.
While other jobs and industries may allow a more relaxed way of doing things, construction is one where it’s incredibly important to follow all of the rules. Not only does it impact the safety of those involved in the building, but it also impacts the safety of those who use the new structure.
If you’re thinking about getting into construction contracting, there are five documents that you should be incredibly familiar with to ensure you’re running all of your projects by the book and keeping everyone safe in the process.
1. License
The first and most important document is your contractors license, like your general contractor license in Colorado if you live there, or your respective state. You’ll need a contractor’s license to perform a contractor’s duties legally. Be sure you’re following all the specific rules for your work area, and be ready to get licensed in other areas if you decide to take on projects across state lines.
If you don’t hold a license, you’re liable for any damage or harm that may come from your construction project.
2. Certificate of insurance
Next, be sure to have a certificate of insurance, specifically liability insurance. It will keep you out of legal trouble, help you protect your workers, and provide a legal release from personal liability for any accidental damage that takes place under your watch.
You should keep a copy of your insurance with you at all times just in case a situation arises where you need to prove your coverage.
3. Workers compensation waiver
Another must is your workers’ compensation waiver, which usually gets signed by workers to waive their right to sue in the event of an accident. It establishes the difference between the general contractor and the technically independent contractors who serve as their own employer in all situations, including workplace injuries.
4. Contractor agreement
Your construction contractor agreement is the official document you will sign once the client has accepted your bid for a specific job. It should cover things like scope of work, schedule, contractor information, payment of work, weather and environmental provisions, supplier details, and any government details.
You never want to begin any work without a completed and signed construction contractor agreement, as it’s the principal agreement between a property owner and you, the contractor. This document will help you avoid lawsuits and confusion and is a great reference for any questions that come up along the way.
5. Safety reports
By nature, construction is an extremely active and physical job. Because of all the safety hazards and practices in place, creating and maintaining detailed safety reports is critical to protecting you, your workers, the property, and your company.
Safety reports should include a checklist of expectations and policies, and you should review these every day to measure and monitor workplace safety and ensure compliance. They are also essential in the case of an accident claim, so you don’t want to be without them.
The contractor’s arsenal
While tools of the trade can go a long way in building houses or commercial buildings, it’s the documents and paperwork that go the distance to protect you and your team as a chosen contractor.
By ensuring you always have access to your license, insurance certificate, worker’s compensation waivers, contractor’s agreement and safety reports, you’ll have protection from every angle should something go awry.
