Showcase — a real run, precomputed
One full-size contract.
Everything Redline covers.
This is a real Redline review of a fictional 101-page subcontract and its proposal, run once through the actual production engine and saved so you can explore every layer. Run the same contract on a Texas project and the review orients to Texas. Curated, citation-backed rule packs cover some states; elsewhere the AI layer flags state-sensitive clauses and says so.
101
pages read, every term page-cited
42
findings
25
high-risk
3m 14s
full AI + deterministic review
First, Redline read the contract — 16 terms, each with its page
Counterparty (GC)p. 1
Sterling Meridian Builders, LLC
Contract pricep. 37
$2,500
Retainagep. 15
10%
Payment timingp. 15
60 days
Pay-if-paid / contingent paymentp. 15
Present — payment contingent on owner paying
Liquidated damagesp. 37
$2,500 / day
Warranty periodp. 80
2 years
Written change ordersp. 72
Written authorization required before extra work
No-damages-for-delayp. 65
Present — delay costs barred, time-only remedy
Prime contractp. 8
Incorporated by reference — request it if not attached
Governing lawp. 94
Georgia
Required CGL (per occurrence)p. 58
$2,000,000
Required CGL (aggregate)p. 58
$2,000,000
Required umbrella/excessp. 58
$5,000,000
Dispute forump. 94
Arbitration
Termination for conveniencep. 87
Present — confirm you're made whole on termination
What this contract could cost
Computed only from confirmed terms and the interview — nothing estimated.
Days of delay that erase your profit
0 days
At $2,500/day in liquidated damages against ~$275 of profit (11% margin on $2,500), day 1 of delay puts this job underwater — and the LDs have no cap as written.
Your money held as retainage
$250
10% of the contract price held back until release conditions are met — 91% of this job's profit.
Owner-insolvency risk sits on you
Pay-if-paid
Payment is contingent on the owner paying the GC — if the owner doesn't pay, this clause says you don't get paid, no matter how good your work was.
You finance the work
60 days
You carry labor and material costs for up to 60 days per cycle on a $2,500 contract before payment lands — well past the net-30 you likely priced.
Your bid vs. this contract — 8 findings
The proposal excluded it — the contract added it back. Every conflict quotes both documents.
highBid/Contract Conflict — Unpriced Scopep. 22›
“…exity. ARTICLE 5 - SCOPE. Subcontractor shall provide all substrate preparation necessary to achieve an acceptable installation surface, in…”
Your proposal excludes floor / substrate preparation ("Floor preparation and moisture mitigation - Temporary power - Permits and inspection" — proposal p. 1), but the contract requires it ("…exity. ARTICLE 5 - SCOPE. Subcontractor shall provide all substrate preparation necessary to achieve an acceptable installation surface, in…", p. 22). Direct contradiction between your price and your contractual obligation. Exposure: Grinding, leveling, patching and related labor/material — commonly five figures on commercial slabs.
Proposed redline
Notwithstanding any other provision, the following exclusion from Subcontractor's proposal is incorporated into and controls the Subcontract scope: "Floor preparation and moisture mitigation - Temporary power - Permits and inspection". Any such work, if required, shall be performed only pursuant to a written change order with an equitable adjustment to the Subcontract Price and Time.
The exclusion existed for a reason — it wasn't priced. Carry it expressly into the subcontract scope, or price the work before signing. (What the contract requires vs. what you bid — resolve the gap now, not at backcharge time.)
highBid/Contract Conflict — Unpriced Scopep. 22›
“…mits and inspection fees. Subcontractor shall be responsible for temporary power for its own operations. Section 4.1. The parties shall coor…”
Your proposal excludes temporary power / utilities ("Floor preparation and moisture mitigation - Temporary power - Permits and inspection" — proposal p. 1), but the contract requires it ("…mits and inspection fees. Subcontractor shall be responsible for temporary power for its own operations. Section 4.1. The parties shall coor…", p. 22). Direct contradiction between your price and your contractual obligation. Exposure: Generator/service costs and utility fees for the duration.
Proposed redline
Notwithstanding any other provision, the following exclusion from Subcontractor's proposal is incorporated into and controls the Subcontract scope: "Floor preparation and moisture mitigation - Temporary power - Permits and inspection". Any such work, if required, shall be performed only pursuant to a written change order with an equitable adjustment to the Subcontract Price and Time.
The exclusion existed for a reason — it wasn't priced. Carry it expressly into the subcontract scope, or price the work before signing. (What the contract requires vs. what you bid — resolve the gap now, not at backcharge time.)
highBid/Contract Conflict — Unpriced Scopep. 22›
“…and moisture mitigation. Subcontractor shall obtain and pay for all permits and inspection fees. Subcontractor shall be responsible for…”
Your proposal excludes permits / fees ("Floor preparation and moisture mitigation - Temporary power - Permits and inspection" — proposal p. 1), but the contract requires it ("…and moisture mitigation. Subcontractor shall obtain and pay for all permits and inspection fees. Subcontractor shall be responsible for…", p. 22). Direct contradiction between your price and your contractual obligation. Exposure: Permit and inspection fees, plus schedule risk of procurement.
Proposed redline
Notwithstanding any other provision, the following exclusion from Subcontractor's proposal is incorporated into and controls the Subcontract scope: "Floor preparation and moisture mitigation - Temporary power - Permits and inspection". Any such work, if required, shall be performed only pursuant to a written change order with an equitable adjustment to the Subcontract Price and Time.
The exclusion existed for a reason — it wasn't priced. Carry it expressly into the subcontract scope, or price the work before signing. (What the contract requires vs. what you bid — resolve the gap now, not at backcharge time.)
highBid/Contract Conflict — Mobilizationp. 29›
“…y. ARTICLE 6 - SCHEDULE. Contractor may resequence the Work at its sole discretion, and Subcontractor shall pe…”
Your proposal includes ONE mobilization ("Price includes one (1) mobilization" — proposal p. 1), but the contract lets the GC resequence or require additional mobilizations ("…y. ARTICLE 6 - SCHEDULE. Contractor may resequence the Work at its sole discretion, and Subcontractor shall pe…", p. 29). Real-world risk: additional supervision, equipment, labor, travel and setup you never priced.
Proposed redline
Subcontractor's price includes one (1) mobilization. Material resequencing of Subcontractor's work, or any additional mobilization, shall entitle Subcontractor to an equitable adjustment of the Subcontract Price and Time.
You priced one mobilization. The contract gives the GC more — each one is real crew, travel, and setup cost. Require an equitable adjustment for material resequencing before signing.
highBid/Contract Conflict — Labor / Accelerationp. 29›
“…tions at no additional cost. Contractor may require overtime, weekend work, or second shift at no additional compensatio…”
Your proposal is priced on normal working hours ("normal business hours" — proposal p. 1), but the contract allows required overtime, weekends, or added shifts ("…tions at no additional cost. Contractor may require overtime, weekend work, or second shift at no additional compensatio…", p. 29). Premium labor is a direct hit to margin at time-and-a-half or worse.
Proposed redline
Subcontractor's price is based on work performed during normal working hours, Monday through Friday. Overtime, weekend work, additional shifts, or acceleration directed by Contractor shall be compensable at Subcontractor's premium labor rates by change order.
Estimate the potential premium-labor exposure before accepting — or make directed acceleration compensable, which is the market-normal position.
highBid/Contract Conflict — Unpriced Design Responsibilityp. 44›
“…8 - DESIGN. Subcontractor shall provide delegated design services for its scope, with calculations signed and sealed…”
Your proposal carries no design responsibility ("Design is excluded" — proposal p. 1), but the contract requires it ("…8 - DESIGN. Subcontractor shall provide delegated design services for its scope, with calculations signed and sealed…", p. 44). That means engineering cost, PE stamps, professional-liability insurance, and errors-and-omissions exposure your price never contemplated.
Proposed redline
Subcontractor has no design responsibility under this Subcontract. Any delegated design, engineering calculations, or professional certifications, if required, shall be provided only pursuant to a written change order including the cost of design services and professional liability insurance.
Unpriced design responsibility is a different business than the one you bid. Price it, insure it, or strike it before signing.
highBid/Contract Conflict — Price›
Your proposal total ($2,400,000 — proposal p. 1) does not match the Subcontract Sum ($2,500) — a difference of −$2,397,500. Confirm which number is right and WHY they differ (scope change? alternate accepted? typo?) before signing.
A price mismatch is either a clerical error or a silent scope change. Neither should survive to signature unexplained.
mediumBid/Contract Conflict — Payment Termsp. 15›
“…ay Subcontractor. Payment shall be made within sixty (60) days of approved invoice. Contractor shall retain ten percent (1…”
You quoted net-30 (proposal p. 1); the contract pays in 60 days (p. 15). That's 30 extra days of financing labor and material on every cycle — cash flow you didn't price.
Proposed redline
Payment of Subcontractor's approved applications shall be made within 30 days of submission, consistent with the payment terms of Subcontractor's proposal.
Payment terms are part of the price. Longer terms without a price adjustment is a silent discount.
The law where this project sits — 6 findings
This sample project happens to sit in Atlanta, so Georgia's rules fire — run the same contract on a Texas project and the review orients to Texas. Curated, citation-backed rule packs (with dates and verification status) cover some states; elsewhere the AI layer flags state-sensitive clauses and says so.
highGeorgia Law — Pay-if-paid is generally enforceable in Georgiap. 15›
This contract's payment-contingency clause is the kind Georgia courts generally enforce as written — unlike some states, you should NOT count on the law to soften it later. If the owner doesn't pay, this clause is designed to leave that loss with you. The negotiation table is where this gets fixed, not the courthouse. (Enforceable but aggressive.)
Proposed redline
Payment to Subcontractor shall be due within a fixed number of days of Subcontractor's approved application, and receipt of payment by Contractor from Owner shall not be a condition precedent to Contractor's obligation to pay Subcontractor; the parties agree Contractor bears the risk of Owner nonpayment for Subcontractor's properly performed work.
Georgia courts generally ENFORCE pay-if-paid provisions that clearly and unambiguously make the owner's payment a condition precedent to the subcontractor's right to payment. Authority: Georgia appellate case law on conditions precedent. Effective 1990-01-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
highGeorgia Law — Georgia's anti-indemnity statute voids sole-negligence indemnityp. 51›
“…, arising out of or resulting from performance of the Work, regardless of whether such claim, damage, loss or expense is caused in part by a party indemnified hereunder. Section 8.1. The parties shall coordi…”
This contract's broad indemnity language reaches losses caused by the indemnified parties themselves. To the extent it requires you to cover the GC's or Owner's SOLE negligence, Georgia's anti-indemnity statute generally voids that portion — but relying on partial invalidation at claim time is a bad plan: the enforceable remainder can still be far broader than what your insurance covers. Narrow it now. (Statutorily restricted.)
Proposed redline
Subcontractor's indemnity obligations shall apply only to the extent claims, damages, losses or expenses are caused by the negligent acts or omissions of Subcontractor or those for whom Subcontractor is responsible, and shall not extend to any liability arising from the sole negligence of any indemnified party.
In construction contracts, Georgia law generally voids, as against public policy, promises to indemnify a party for liability arising from that party's SOLE negligence (O.C.G.A. § 13-8-2(b)). Authority: O.C.G.A. § 13-8-2(b). Effective 1970-01-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
highGeorgia Law — Georgia restricts lien waivers to statutory forms and scopep. 15›
“…letion of the entire Project. Subcontractor shall execute a waiver of lien with each application for payment. Section 3.1. The parties shall coordinate th…”
This contract contains lien-waiver language. In Georgia, waiver forms and their effect are set by statute — non-conforming or advance waiver language may not operate the way the contract implies, and a waiver should never exceed the payment actually received. Track the 90-day affidavit-of-nonpayment window on every waiver you sign, or unpaid amounts can become waived by silence. (Statutorily restricted.)
Proposed redline
All lien waivers shall be in the forms prescribed by O.C.G.A. § 44-14-366, shall be conditional until payment is actually received, and shall waive rights only to the extent of payment received.
Georgia's lien-waiver statute (O.C.G.A. § 44-14-366) restricts waivers of lien and bond rights to the statutory forms, given in exchange for payment. As amended effective January 1, 2021, a waiver binds after 90 days unless an affidavit of nonpayment is filed, and waivers affect only lien/bond rights — not breach-of-contract claims. Authority: O.C.G.A. § 44-14-366; 2020 Ga. Laws (SB 315), eff. 2021-01-01. Effective 2021-01-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
mediumGeorgia Law — Contract payment terms displace Georgia's prompt-pay defaultsp. 15›
This contract's payment window is materially longer than Georgia's prompt-pay defaults. Because the Act yields to agreed terms, signing this schedule GIVES UP the faster statutory default — the long terms are a negotiated concession, so treat them like one and price or trade them. (Statutorily restricted.)
Georgia's Prompt Pay Act (O.C.G.A. § 13-11-1 et seq.) provides default payment schedules (generally 15 days owner-to-contractor and 10 days contractor-to-subcontractor after receipt) with interest on late payment — but the Act generally yields to the contract's own payment terms. Authority: O.C.G.A. § 13-11-1 et seq.. Effective 1995-01-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
highGeorgia Law — No-damages-for-delay is generally enforceable in Georgiap. 65›
Because Georgia generally enforces this clause as written, the redline is your protection — not the courts. If delay costs from others' actions would hurt at this margin, negotiate compensable-delay carve-outs (owner/GC-caused delay, acceleration, extended general conditions) before signing. (Enforceable but aggressive.)
Georgia courts generally enforce no-damages-for-delay provisions in private contracts, subject to limited exceptions recognized in case law (such as fraud or bad faith). Authority: Georgia appellate case law on no-damages-for-delay. Effective 1990-01-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
infoGeorgia Law — Georgia licensing can bar contract enforcement›
Confirm the entity signing this subcontract holds the Georgia license required for this scope AT SIGNING — for covered work, an unlicensed contractor can be barred from enforcing the contract at all, including suing for payment. This is a five-minute check with contract-killing consequences. (Statutorily restricted.)
Georgia's contractor licensing law provides that contracts entered by contractors required to be licensed but unlicensed at the time are generally unenforceable by the contractor (O.C.G.A. § 43-41-17(b)); trade-specific licensing (electrical, plumbing, conditioned air) is governed separately (O.C.G.A. Title 43, Ch. 14). Authority: O.C.G.A. § 43-41-17(b); O.C.G.A. Title 43, Ch. 14. Effective 2008-07-01; content verified 2026-08-25 (pack 2026.08.0). [Legal content pending attorney verification — treat as orientation, and confirm before relying on it in negotiation.] Not legal advice.
Insurance: required vs. carried — 3 findings
The contract's required limits, checked against the coverage profile on file.
lowInsurance — Above-Market Limitsp. 58›
“…...umbrella liability coverage of not less than $5,000,000, naming Contractor and Owner as additional insureds on a primary and noncontributory basis.…”
CGL at $2M/occurrence is acceptable, but a required $5M umbrella on top ($7M total) is above market for an interiors subcontract of this size and adds premium cost that may not be in our bid.
Proposed redline
Reduce umbrella requirement to $2,000,000 (or confirm the required limits match what was priced in the bid). Confirm additional-insured endorsements are limited to liability arising out of our Work.
Excess coverage requirements add cost that may not have been carried in pricing.
highInsurance — Coverage Gapp. 58›
The contract requires CGL per occurrence of $2,000,000, but your workspace profile shows $1,000,000 carried — a $1,000,000 gap. An uninsured obligation of this size lands on the company, not a carrier.
Proposed redline
Subcontractor's insurance obligations shall not exceed the coverage limits carried by Subcontractor as of the date of this Agreement (CGL per occurrence: $1,000,000), or the Contract Price shall be equitably adjusted to reflect the cost of additional required coverage.
Insurance requirements above carried coverage must be priced (buy up), negotiated down to carried limits, or knowingly accepted before signing. Confirm exact figures with your broker — this comparison uses the limits saved in your workspace, not a coverage opinion.
highInsurance — Coverage Gapp. 58›
The contract requires umbrella/excess of $5,000,000, but your workspace profile shows $2,000,000 carried — a $3,000,000 gap. An uninsured obligation of this size lands on the company, not a carrier.
Proposed redline
Subcontractor's insurance obligations shall not exceed the coverage limits carried by Subcontractor as of the date of this Agreement (umbrella/excess: $2,000,000), or the Contract Price shall be equitably adjusted to reflect the cost of additional required coverage.
Insurance requirements above carried coverage must be priced (buy up), negotiated down to carried limits, or knowingly accepted before signing. Confirm exact figures with your broker — this comparison uses the limits saved in your workspace, not a coverage opinion.
The full clause-by-clause review — 25 findings
Payment, indemnity, delay, termination, warranty, disputes — the complete redline set with proposed language.
mediumLead Timep. 1›
Lead-time block
Proposed redline
Lead time commences at time of production release, which requires the following: 1) Executed Purchase Order; 2) Receipt of deposit; 3) Seller's shop drawings signed and approved by Buyer; 4) Material finish approvals, if applicable.
Defines when lead time starts so delivery estimates aren't held against us before prerequisites are met.
highAdded Termsp. 1›
Shop drawings approval
Proposed redline
Mstone's shop drawings must be signed and approved by Contractor prior to fabrication; stamps or notations such as “reviewed” or “reviewed as noted” do not constitute approval. All materials provided by Mstone are based on Mstone's project quotes and signed approved shop drawings which are based on the plans and specifications provided by Contractor.
Approval of shop drawings is a fabrication prerequisite.
highAdded Termsp. 1›
Code / ADA compliance
Proposed redline
Prior to fabrication, Purchaser is required to ascertain that the products supplied are in accordance with applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of governmental and public authorities, including, but not limited to, ADA and other accessibility requirements. Purchaser is solely responsible for obtaining said compliance and notifying Vendor prior to fabrication of any changes required to bring products into compliance. Purchaser is responsible for the costs required to bring products into compliance.
Places code/ADA compliance responsibility on Purchaser.
highAdded Termsp. 1›
Warranty
Proposed redline
Vendor warrants all materials and workmanship for the products provided to the referenced project for a period of one (1) year from the project Date of Substantial Completion. The warranty is limited to manufacturing defects and does not include damage incurred during shipping, offloading, storage after delivery, onsite fabrication, installation, or wear and tear from normal use. Vendor did not execute and assumes no responsibility for issues associated with installation of products provided.
Defines a limited one-year manufacturing-defect warranty.
mediumAdded Termsp. 1›
Force Majeure
Proposed redline
Force Majeure. An “Event of Force Majeure” means any circumstance not within the reasonable control of the Party affected, but only if and to the extent that (i) such circumstance, despite the exercise of reasonable diligence and the observance of Good Utility Practice, cannot be, or be caused to be, prevented, avoided or removed by such Party, and (ii) such circumstance materially and adversely affects the ability of the Party to perform its obligations under this Agreement, and such Party has taken all reasonable precautions, due care and reasonable alternative measures in order to avoid the effect of such event on the Party's ability to perform its obligations under this Agreement and to mitigate the consequences thereof. Events of “Force Majeure” shall include, but not be limited to, the following to the extent that they are beyond the reasonable control of the Party: Acts of God, Acts of War, Terrorist Acts, civil unrest, riots, newly announced or enacted governmental restrictions and/or regulations, area-wide labor disputes (excluding disputes with laborers on the Project), adverse weather conditions affecting the critical path, unavoidable material shortages, unavoidable shipping or manufacturing delays, including pandemic related market or shipping disruptions, and fire or other unavoidable casualty loss.
Excuses performance for events beyond reasonable control.
highPayment — Pay-if-Paid / Condition Precedentp. 15›
“…Payment to Subcontractor is expressly contingent upon Contractor's receipt of payment from Owner... a condition precedent to any obligation of Contractor to pay Subcontractor.…”
This is a true pay-if-paid clause making our payment conditional on the GC getting paid by the Owner — if the Owner never pays (bankruptcy, dispute, default), we could do all the work and never get paid. This is the firm's designated NON-NEGOTIABLE, and Georgia courts will enforce clear condition-precedent language, so it must be struck.
Proposed redline
Replace with: 'Contractor shall pay Subcontractor within thirty (30) days of a properly submitted application for payment. Receipt of payment by Contractor from Owner is not a condition precedent to Contractor's obligation to pay Subcontractor; the timing of Owner payment may serve only as a reasonable timing mechanism, and in no event shall Subcontractor's right to payment be contingent on Contractor's receipt of payment from Owner.'
Shifts the Owner's credit/insolvency risk onto us and could leave a $2.4M job entirely unpaid — this must come out before signing.
highIndemnification — Broad-Formp. 51›
“…To the fullest extent permitted by law, Subcontractor shall indemnify... regardless of whether such claim... is caused in part by a party indemnified hereunder.…”
We are forced to defend and pay for losses even when the GC or Owner caused them in part. Georgia's anti-indemnity statute (O.C.G.A. § 13-8-2(b)) voids indemnity for the indemnitee's own negligence in construction contracts, so this is partly unenforceable and will breed litigation over its scope.
Proposed redline
Replace the 'regardless of whether...' language with: 'but only to the extent caused by the negligent acts or omissions of Subcontractor, its agents, or anyone for whose acts it may be liable. Subcontractor shall have no obligation to indemnify any party for that party's own negligence or willful misconduct.'
Broad-form indemnity exposes us to liability far beyond our own fault and is void under Georgia law to the extent it covers the GC's negligence.
highDelay — No Damages for Delayp. 65›
“…Subcontractor shall not be entitled to any damages, costs or compensation on account of any delay... whatever the cause... sole and exclusive remedy being an extension of time.…”
Even when the GC or Owner causes the delay (late access, out-of-sequence work, design changes), we absorb all extra labor, extended overhead, and escalation costs and get only more time. On a schedule that is already tight against our bid, this is a major uncompensated exposure.
Proposed redline
Add carve-out: 'except that Subcontractor shall be entitled to an equitable adjustment of both time and compensation for delays, disruptions, accelerations, or hindrances caused by Contractor, Owner, their other subcontractors, or by causes within their control, or to the extent Contractor recovers such amounts from Owner on Subcontractor's behalf.'
Bars recovery of delay costs we didn't cause — combined with the tight schedule and uncapped LDs, this is a serious money risk.
highTermination for Convenience — No Profit/Overheadp. 87›
“…Subcontractor shall be paid solely for work satisfactorily performed... expressly excluding any overhead, anticipated profit, or costs on unperformed work.…”
The GC can cancel at will and pay us only for installed work with zero overhead and zero profit, even on our completed portion, and nothing for demobilization or restocking. That strips the margin we priced into this job.
Proposed redline
Replace with: 'Subcontractor shall be paid for all Work performed to the date of termination, including allocable overhead and profit on Work performed, plus reasonable demobilization, restocking, and close-out costs, and reasonable profit on the terminated (unperformed) Work.'
A convenience termination as written lets the GC walk away with our overhead and profit unpaid on an ~11% margin job.
highLien Rights — Advance/Unconditional Waiverp. 15›
“…Subcontractor shall execute a waiver of lien with each application for payment.…”
Requiring a lien waiver with each pay application means we may waive lien rights before actually receiving payment. Under Georgia law (O.C.G.A. § 44-14-366), lien rights cannot be waived in advance, waivers must follow the statutory form, and an interim waiver becomes binding 60 days after execution unless an affidavit of nonpayment is filed — so this can wipe out our security if payment lags.
Proposed redline
Revise to: 'Subcontractor shall provide lien/bond waivers in the statutory forms required by O.C.G.A. § 44-14-366, conditioned upon and effective only to the extent of payments actually received. No waiver of lien or bond rights in advance of payment shall be required or effective.'
An advance/unconditional waiver forfeits our primary collection tool on a $2.4M job and is unenforceable in Georgia if executed before payment.
highLiquidated Damages — Uncappedp. 37›
“…...as liquidated damages and not as a penalty, the sum of Two Thousand Five Hundred Dollars ($2,500) per calendar day of delay until the Work is complete.…”
LDs of $2,500/day with no cap and no carve-out for excusable/GC-caused delay. At our ~11% margin (~$265,000 profit on $2,412,500), roughly 106 days of delay erases ALL profit on this job — and the exposure keeps running with no ceiling. This is exactly the risk the firm flagged as its top concern.
Proposed redline
Add: '(a) LDs shall not accrue for delays caused by Contractor, Owner, other subcontractors, or force majeure/excusable events; and (b) Subcontractor's total aggregate liability for liquidated damages shall not exceed five percent (5%) of the Subcontract Sum.' Also confirm LDs apply only to delay in Subcontractor's own scope, not project-wide.
Uncapped daily LDs on a tight schedule can exceed our entire profit and then some — a cap and excusable-delay carve-out are essential.
highSchedule — Uncompensated Accelerationp. 29›
“…Contractor may require overtime, weekend work, or second shift at no additional compensation.…”
The GC can order overtime, weekend, and second-shift work at no added cost to it — meaning we eat premium wages and reduced productivity. On a schedule already tight against the bid, this converts any GC-driven acceleration into a direct hit to our margin.
Proposed redline
Revise to: 'If Contractor directs overtime, weekend, or additional-shift work not caused by Subcontractor's own fault, such acceleration shall be treated as a change and Subcontractor shall be paid its actual premium/overtime costs plus markup via change order.'
Forced acceleration at no cost lets the GC recover schedule at our expense, directly eroding profit on a tight job.
mediumPayment Terms — Net-60p. 15›
“…Payment shall be made within sixty (60) days of approved invoice.…”
Net-60 is double our standard net-30 and slow relative to Georgia's Prompt Pay Act expectations (O.C.G.A. § 13-11-1 et seq.), straining our cash flow across a $2.4M scope. The firm's stated priority is to get paid fast.
Proposed redline
Change 'sixty (60) days' to 'thirty (30) days of a properly submitted application for payment,' and add that undisputed amounts not paid when due accrue interest at the statutory rate under Georgia's Prompt Pay Act.
Net-60 ties up our working capital and conflicts with the firm's get-paid-fast priority.
mediumRetainage — 10% Held to Final Completion of Whole Projectp. 15›
“…Contractor shall retain ten percent (10%) of each progress payment as retainage until final completion of the entire Project.…”
Retainage is double our 5% standard AND it is held until the ENTIRE project is finished — not when our interiors scope is done. As an early-finishing trade, our money could sit for many months after we've completed and demobilized.
Proposed redline
Revise to: 'Retainage shall be five percent (5%). Retainage on Subcontractor's Work shall be released within thirty (30) days after substantial completion of Subcontractor's scope, and shall not be withheld pending completion of other trades or the overall Project.'
10% held to project-wide final completion leaves roughly $240K of our money parked long after we finish — cut to 5% released at our own substantial completion.
mediumSchedule — Resequencing & Free Remobilizationp. 29›
“…Contractor may resequence the Work at its sole discretion, and Subcontractor shall perform additional mobilizations at no additional cost.…”
The GC can reshuffle our sequence at will and force repeated mobilizations for free. Each extra trip carries real crew, equipment, and setup cost that isn't in our bid.
Proposed redline
Add: 'Resequencing that materially changes Subcontractor's planned sequence, or that requires mobilizations beyond those reasonably contemplated in the bid, shall entitle Subcontractor to an equitable adjustment in price and time by change order.'
Unlimited free remobilizations let the GC transfer its coordination costs onto us.
mediumWarranty — 24 Monthsp. 80›
“…Subcontractor warrants the Work for a period of two (2) years from the date of substantial completion of the Project.…”
A 24-month warranty is double our standard 1-year term, and it runs from substantial completion of the whole Project rather than of our scope — extending our exposure since our work finishes earlier.
Proposed redline
Revise to: 'Subcontractor warrants the Work for one (1) year from substantial completion of Subcontractor's scope, plus pass-through of longer manufacturer warranties. Correction obligations shall not extend the warranty beyond this period except for corrected items.'
The extra year and project-wide trigger lengthen our callback liability beyond what we priced.
mediumFlow-Down / Incorporation by Referencep. 8›
“…The prime contract... is incorporated herein by reference... Subcontractor assumes toward Contractor all obligations which Contractor assumes toward Owner.…”
We are bound to every obligation the GC owes the Owner under a prime contract we haven't seen — potentially including onerous schedule, indemnity, LD, and payment terms hidden in that document. Blind flow-down can silently override the protections we negotiate here.
Proposed redline
Add: 'Flow-down applies only to obligations reasonably related to Subcontractor's scope. In the event of a conflict, the more specific and Subcontractor-favorable provision of this Subcontract governs. Contractor shall provide a complete copy of the prime contract (pricing may be redacted) before execution.' Confirm we have received and reviewed the prime contract.
We can't accept obligations we haven't read; unlimited flow-down can smuggle in worse terms than this subcontract.
mediumDelegated Design — Professional Liabilityp. 44›
“…Subcontractor shall provide delegated design services for its scope, with calculations signed and sealed by a professional engineer licensed in the State of Georgia.…”
We are taking on professional design liability, but the contract's insurance article requires only CGL/umbrella — which typically excludes professional (design) errors. We could be liable for design defects with no coverage, and our design standard should be limited to the design criteria we're given.
Proposed redline
Add: 'Subcontractor's design responsibility is limited to conformance with the design criteria and performance requirements furnished by the design professional of record. Subcontractor shall maintain Professional Liability insurance appropriate to the delegated design, and this obligation shall be priced as an added service if not included in scope.'
Delegated design creates uninsured professional-liability exposure unless we carve out the standard of care and require matching PL coverage.
mediumMissing Protection — Right to Cure / Notice of Default›
“…No default-termination cure period or notice provision found.…”
The contract has a termination-for-convenience clause but no default/termination-for-cause provision giving us written notice and an opportunity to cure before the GC can declare default, supplement our forces, or backcharge us. That leaves us exposed to summary default and backcharges.
Proposed redline
Add: 'Prior to any termination for default or exercise of supplementation/backcharge rights, Contractor shall give Subcontractor written notice specifying the alleged default and at least ten (10) days to commence cure. Backcharges require prior written notice and reasonable documentation.'
No cure/notice right lets the GC declare us in default and backcharge without warning.
mediumMissing Protection — Suspension for Non-Payment›
“…No right to suspend work for non-payment found.…”
There is no provision letting us stop work if the GC fails to pay amounts due. Without it — and given the net-60/pay-if-paid terms — we could be forced to keep financing the job while unpaid.
Proposed redline
Add: 'If Contractor fails to pay undisputed amounts within seven (7) days after they are due, Subcontractor may, after written notice, suspend performance until paid, with an equitable adjustment to time and price, without such suspension being a default.'
A suspension right is our leverage to get paid and cap the money we advance on the GC's behalf.
lowScope — Moisture Mitigation & Permitsp. 22›
“…Subcontractor shall provide all substrate preparation... including grinding, leveling, patching and moisture mitigation. Subcontractor shall obtain and pay for all permits and inspection fees.…”
Moisture mitigation is an open-ended, potentially high-cost obligation driven by existing slab conditions we don't control, and 'all permits and inspection fees' can be broader than our trade. Both should be defined or made subject to allowances/unit pricing.
Proposed redline
Add: 'Moisture mitigation is included only to the extent slab moisture readings exceed [specified threshold]; mitigation beyond that threshold, or caused by conditions existing before Subcontractor's start, shall be a change. Permit obligation is limited to permits customary to Subcontractor's trade.'
Unbounded moisture-mitigation liability tied to pre-existing slab conditions is a classic cost sink for interiors trades.
lowChanges — No Sub Entitlement Mechanismp. 72›
“…No changes in the Work shall be performed unless authorized by written change order signed by Contractor prior to commencement of the changed work.…”
The written-change-order requirement is good (protects both sides), but the clause is one-directional: it gives no mechanism or timeline for us to submit, price, or get paid for extra work, and no protection for constructive changes or field directives the GC issues without a formal CO.
Proposed redline
Add: 'Contractor shall respond to Subcontractor's change proposals within ten (10) days. Where Contractor directs changed or extra work in writing (including field directives) but a signed change order is delayed, Subcontractor shall proceed and be compensated on a time-and-materials basis. Constructive changes entitle Subcontractor to equitable adjustment.'
Without a two-way process we may perform GC-directed extras and struggle to get paid for them.
infoDispute Resolution — Arbitration Details Unspecifiedp. 94›
“…This Agreement shall be governed by the laws of the State of Georgia. Any dispute shall be resolved by binding arbitration in Atlanta, Georgia.…”
Positive news: governing law is Georgia and the seat is Atlanta (local), which is favorable and consistent with the project location. However, the clause omits the administering body, rules, and arbitrator-selection method, which can lead to disputes about process.
Proposed redline
Add: 'Arbitration shall be administered by the AAA under its Construction Industry Rules before a single neutral arbitrator (or a three-member panel for disputes over $[X]), with each party bearing its own fees and the arbitrator empowered to award prevailing-party costs.'
Naming the rules and arbitrator process now avoids fights about how a dispute gets heard later.
highFlow-Down›
This subcontract incorporates the prime contract by reference, but no prime was provided for review. You are agreeing to be bound by terms you have not seen — schedule, liquidated damages, notice deadlines, and dispute terms all flow down from a document that isn't in front of you.
Proposed redline
Request a complete copy of the prime contract (and all exhibits) before signing, or limit flow-down to enumerated articles you have reviewed.
Incorporation-by-reference makes the prime's obligations yours. You can't accept what you haven't read, and 'we didn't see the prime' is not a defense once you've signed a flow-down clause.
highIncorporated Documents Not Providedp. 8›
“…The prime contract between Contractor and Owner, together with all general conditions, drawings, specifications, exhibits and addenda thereto, is incorporated herein by reference a…”
This contract incorporates documents by reference that were not provided with it: General conditions (p. 8), Drawings (p. 8), Specifications (p. 8), Addenda (p. 8). You are agreeing to every obligation inside them without having seen them — an incorporated document you haven't read is scope, risk, and cost you can't price.
Proposed redline
Request before signing: "Please provide complete copies of all documents incorporated into the Subcontract, including the general conditions, drawings, specifications, addenda. Subcontractor's obligations under any incorporated document shall be limited to those documents actually received by Subcontractor prior to execution, and any requirements in later-provided or later-modified documents that materially affect Subcontractor's cost or time shall be handled by change order."
The pre-signing rule: every incorporated document is either in hand and reviewed, or expressly carved out until received. Unilateral later modification of incorporated requirements deserves the same change-order protection.
Then, the sign-off gate
Twelve questions every contract must answer before signature, and ten risk dimensions scored individually — no single meaningless number. This is the gate the moment analysis finished, before anyone decided anything. In your portal, each finding gets a management decision — accept, negotiate, price it in, insure it, escalate — and the gate flips as your team works the list.
Not signature-ready: 25 undecided high-risk findings and 1 unanswered gate question.
Do you know exactly what you're building?
Do you know exactly what you priced?
Do you know everything you're legally agreeing to — including every incorporated document?
Can you realistically perform on the required schedule?
When will you get paid, and how much must you finance?
Will you actually get paid when the work changes?
Who pays when the project doesn't proceed as planned?
Could exposure exceed the profit, the price, the insurance — or the company?
Does insurance actually cover the contractual obligations?
Can your field and office comply with the notice and documentation requirements?
How much commercial leverage exists with this GC?
If everything that could reasonably go wrong did, what would this contract cost?
Risk profile — scored per dimension
Scores derive only from this run's findings; a decided finding counts as managed risk, never erased.
Your contract gets exactly this.
Create a free account and your first contract is reviewed free — full redline, Word markup, GC packet, all of it.
Fictional parties and project — a real engine run, for demonstration. Legal findings pending attorney verification. Not legal advice.
