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Stop! Don’t Sign That Contract Yet!

Stop! Don’t Sign That Contract Yet!

As a benefit to current, new and prospective clients, Hayes Brokers offers risk management services that include contract review of the insurance terms of any contract.  As insurance professionals we feel it is our duty not only to protect your business, but also to save you money. There are many parts to a contract and insurance is just one of them. It is important to review a contract prior to signing for many reasons, most of them fiduciary in nature.  Here are 5 things you should always check before signing. Prevailing Wages Many government entities require that contractors on their projects pay prevailing union wages to all employees of a contractor or subcontractor, even if those employees are not union employees.  Failure to do so can result in larger payouts over time, as well as fines to the contractor for failure to comply. In New Bedford, MA an electrical contractor tried to get around the prevailing wage law by incorrectly classifying his electricians as laborers. After an investigation the contractor was ordered to pay not only the $83,000 in restitution, but also $42,500 in fines and penalties.  That will cut into your profit margin! A California heating & air conditioning company was recently required to pay $99,000 in back wages to plumbers and pipefitters who were incorrectly classified as unskilled laborers on a project in Hawaii.  The Department of Labor got involved in the case because these were federal contracts outfitting Army barracks on the island of Oahu.  Bonds Does your contract require any type of bonding be done?  Some developers may require bid bonds, performance bonds, payment bonds,...