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PO or contract

OhioConstruction Contract

Hello, I am schedule to replace the roof of a hotel. I submitted my contract and the owners requested that we only sign a detailed PO. My only concern is that the terms I have in my contract wont be on the PO and should a problem arise I could be liable for items that I would otherwise be free from. On the otherhand the customers wouldnt have in writing the terms that protect them such as a workmanship warranty. How should this be handled? Thanks

2 replies

Oct 3, 2022

Welcome to the wonderful world of commercial subcontract work. Every contract is negotiated, especially on commercial projects such as hotels. You could obviously stand firm and require that your contract be used, but then you run the risk of losing out on the contract. Because of this, many subcontractors in your situation simply take whatever the General Contractor puts in front of them and sign it. 

I would shoot for the happy medium approach. Take their PO or contract. Add in some terms that you want, and take away some of their more onerous terms. Then try to arrive at a happy medium. Some GCs are more than willing to bargain on terms a bit, and all you have to do is ask to figure that out. Asking is not going to cause a GC to throw away your bid. 

On another note, if you lose some protections from the contract, it is that much more important to preserve and protect your lien rights by making certain you properly serve a notice of furnishing on the project prior to (or immediately after) commencing work on the project. 

And lastly, just an FYI, a contract does not need a warranty provision in order for you to warrant the work. All construction work in Ohio is subject to an implied warranty that the work will be performed in a "workmanlike manner," which basically means free from defects. So either way, with or without the provision, you are providing a warranty.  

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Oct 4, 2022
Hey Mike, Thanks. I’m actually the “GC” on this project. I also have an agreement in place that binds me to the work so I’m not so worried about not getting the contract just more worried about my risk and liabilities going in with only a PO.
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