Hey everyone! I'm a subcontractor based in California and I recently had to walk away from a contract that felt really off. A company that connects subcontractors with general contractors contacted me for a commercial tile installation project with a tight deadline. They admitted to underbidding the project and while I negotiated a slightly better price, the contract they sent over raised a lot of concerns. It had inconsistent payment amounts, unclear liability insurance requirements, potential legal traps with lien waivers, a broad indemnification clause, and a five-year non-compete for a single job. I ended up deciding to walk away due to these red flags. Has anyone else encountered something like this? Would you have done the same?
5 Answers
I've dealt with many contracts and yeah, this one sounds like a template that wasn't tailored to your situation. The retention rate they mentioned isn't unusual for bigger jobs, but working at a loss is never a good idea. You made a smart move by not getting tangled in that mess.
Honestly, this probably ended up being the best job you never got. Your instincts kicked in, and that’s what matters. Trusting those feelings is key in this business!
If they're requiring 10% retention, that’s pretty standard for larger projects. But if everything else feels off, then it’s definitely time to say no. Plus, sending the same contract back without changes? That’s super unprofessional.
Yeah, it felt like they didn't really know what they were doing.
As a legal consultant, I would say you made the right call. The non-compete for just one job is a huge red flag. Plus, if they can't even bid correctly, how reliable can they really be? It'd be interesting to see if others have had similar experiences with this company.
Totally agree! I looked for reviews but couldn't find anything about them.
Sounds like you definitely dodged a bullet here! It seems like they were just looking to shift their costs onto you as the project progressed. Good on you for trusting your gut and walking away before getting tied up in that mess!
Yeah, I felt that way too. Didn't want to deal with potential headaches.
Yeah, it was under $20K, but it just felt wrong from the start.