Chapter 3. What you get back · Step 8 of 15
What you priced vs what you're signing
This is the question Redline was built around: you priced the job, so are you signing the same job? GC paper routinely puts back the scope your proposal excluded and changes the terms you priced on. Redline reads your proposal next to the contract and shows every place they disagree, and what each one costs.
Live output
5 places this contract doesn't match what Copperline Flooring priced
- high
Unpriced Scope
contract p. 1Your proposal excludes floor / substrate preparation ("Floor prep, grinding and leveling beyond minor patching", proposal p. 1), but the contract requires it ("…t tile and base work. 2.2 Subcontractor shall be responsible for all substrate preparation necessary to receive the flooring, including grin…", p. 1). Direct contradiction between your price and your contractual obligation. Exposure: Grinding, leveling, patching and related labor/material, commonly five figures on commercial slabs.
Proposed language
Notwithstanding any other provision, the following exclusion from Subcontractor's proposal is incorporated into and controls the Subcontract scope: "Floor prep, grinding and leveling beyond minor patching". 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.
- high
Unpriced Scope
contract p. 1Your proposal excludes permits / fees ("Permits and permit fees", proposal p. 1), but the contract requires it ("…atching and leveling. 2.3 Subcontractor shall obtain and pay for all permits required for its Work.…", p. 1). Direct contradiction between your price and your contractual obligation. Exposure: Permit and inspection fees, plus schedule risk of procurement.
Proposed language
Notwithstanding any other provision, the following exclusion from Subcontractor's proposal is incorporated into and controls the Subcontract scope: "Permits and permit fees". 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.
- high
Labor / Acceleration
contract p. 3Your proposal is priced on normal working hours ("normal business hours", proposal p. 1), but the contract allows required overtime, weekends, or added shifts ("…or shall accelerate its Work, including overtime and additional shifts, at no additional cost when directed by Contractor. ARTICLE 5. INDEMN…", p. 3). Premium labor is a direct hit to margin at time-and-a-half or worse.
Proposed language
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.
- high
Price
Your proposal total ($1,815,000, proposal p. 1) does not match the Subcontract Sum ($1,860,000), a difference of +$45,000. Confirm which number is right and WHY they differ (scope change? alternate accepted? typo?) before signing.
- medium
Payment Terms
contract p. 2You quoted net-30 (proposal p. 1); the contract pays in 60 days (p. 2). That's 30 extra days of financing labor and material on every cycle, cash flow you didn't price.
Proposed language
Payment of Subcontractor's approved applications shall be made within 30 days of submission, consistent with the payment terms of Subcontractor's proposal.
What it could cost
The contract's terms, in days and dollars
Days of delay that erase your profit
93 days
At $2,000/day in liquidated damages against ~$186,000 of profit (10% margin on $1,860,000), day 94 of delay puts this job underwater, and the LDs have no cap as written.
Your money held as retainage
$186,000
10% of the contract price held back until release conditions are met: this job's entire profit riding on release.
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 $1,860,000 contract before payment lands, well past the net-30 you likely priced.
Arithmetic on the confirmed facts and the margin from the interview (10% here), nothing more. On the 101-page showcase contract the same comparison found 8 conflicts.
What gets compared