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What language do we need in our contract to insure payment from a corporate entity on a large multimillion dollar job?

CaliforniaConstruction Contract

We're a small CA remodeling company about to undertake a large multimillion dollar project. We will be contracting with a corporate entity rather than an individual. We want to be guaranteed our payments as we go, also, the project could take up to 2 years. Is it possible to hold some or all the cost of the project in some sort of trust or get a personal guarantee?

1 reply

May 30, 2021

I don't believe you'll have any luck with a personal guarantee from a large corporation. That said, and assuming this is a private works project, you have mechanic's lien rights, stop payment notice rights, assuming there is a lender, which is likely, and bond claim rights, possibly. My advice is to be sure to timely serve your 20-day preliminary notice, so as to not waive those rights. Further, you should have a construction lawyer review your contract, and propose revisions to it. I would be glad to help. Call or email later this week, if you like. Good luck. Andrew

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