Where GC projects go wrong
General contractor disputes cluster around a small number of causes: verbal agreements that no one remembers the same way, change orders that were never written down, payments that went to the GC but not to the subs, and licenses that were not verified before signing. Most of these are preventable with basic due diligence before the project starts.
The 10 pitfalls
No written contract
Verbal agreements with contractors are disputes waiting to happen.
Verbal change orders
Scope changes agreed to verbally during a project are the primary source of contractor billing disputes.
Not collecting lien waivers from subcontractors
You can pay the GC in full and still have subcontractors lien your property if the GC did not pay them.
Paying too much upfront
A large upfront payment gives the contractor financial security and you no leverage.
Not verifying the license independently
Contractor license numbers are verifiable on your state's licensing board website.
Not seeing insurance certificates
"We are insured" is not proof of insurance.
Not calling references
References are provided to be called.
Starting work without a permit
Unpermitted work creates problems with home sales, insurance claims, and may not be up to code.
No dispute resolution process in the contract
When things go wrong, you need a defined process.
Confusing "licensed" with "bonded"
A license means the contractor met a state competency standard.
The bottom line
The most expensive GC mistakes are preventable with paperwork: written contract, written change orders, lien waivers, insurance certificates. None of these are adversarial requests - they are standard in the industry. A GC who resists any of these is telling you something important about how they run their business.
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