Legal Mistakes That Could Destroy Contractors & Remodelers | Heather Macklin

Always use written change orders for any project scope changes, even minor ones, and have them signed before starting new work to prevent disputes.

Ensure your corporate formalities (e.g., annual reports, operating agreements, meeting minutes) are up-to-date and consider services that help maintain them to protect personal liability.

Draft comprehensive, state-compliant contracts for both employees and customers, avoiding generic online templates, to clearly define terms, compensation, and responsibilities.

Implement a clear document retention policy, only keeping necessary records for the required time, to reduce discovery costs and streamline potential business sales.

Review your insurance policies regularly with your broker and legal counsel to ensure adequate coverage and limits for your business activities, especially general liability and workers' comp.

Seek legal counsel to ensure compliance with the TCPA and Do Not Call regulations for all marketing and outreach, meticulously obtaining and retaining prior express written consent for at least five years to avoid severe penalties.

Avoid commingling personal and business funds; maintain separate bank accounts for your entity and meticulously document all transactions.