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Red flags when contracting for someone you know

On Behalf of | May 10, 2022 | Construction Law |

Your neighbor finally got enough money together to add on the sunroom they’ve always wanted. Knowing you’re a contractor, they would like you to build it for them. You’ve never been hired by a neighbor before, and you want to make sure that everything goes smoothly.

Even though you’re working for your neighbor, you still want to handle things professionally. Let your neighbor see your credentials, references, and any positive reviews that clients have left online.

Be aware of these red flags

It’s very important that everything is spelled out clearly in your contract. When you go over it with your neighbor, beware of any red flags that pop up, including these signs that should concern you:

  • They tell you not to worry about a permit. Or they say they don’t need one when you bring it up. The majority of cities in the USA require some type of building permit to be in place before you start your project.
  • They tell you neighbors don’t need a contract to do a job. A verbal agreement and handshake are not enough, especially if you work for a neighbor. You want someone who will agree to sign a contract that spells out everything, including payment schedules, estimated completion date, and how any potential problems will be handled.

Maintain a good relationship

You may be concerned that something will go wrong, and you and your neighborly relationship will be ruined. This is why it’s important to spell everything out in a contract. If something does go wrong and you two just can’t work it out, contact an experienced legal advisor as soon as possible.


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