Navigating the intricate world of contract negotiations in the construction industry can be a daunting task. Jacob Edmond and Chad Foster delve deep into this topic, shedding light on the importance of understanding contracts, the challenges faced, and the evolution of the industry.
About Our Guest:
Chad Foster is an advocate for faster releases in the millwork industry. He believes that time is of the essence and that waiting too long to release a project increases the risk involved. Chad has had personal experiences with contracts being affected by even a single word, and he anticipates that the industry will continue to face challenges with the speed at which jobs need to be completed.
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Key Takeaways:
The Intricacies of Contracts
- Understanding the Contract:Chad Foster: “It’s not just about the money. It’s about understanding what you’re agreeing to.”Chad emphasizes the importance of understanding every aspect of a contract. It’s not just about the monetary value but understanding the terms and conditions, the scope of work, and the potential risks involved.
- The Role of Attorneys:Chad Foster: “Bringing attorneys is not always the best thing to do because it can get, they’re going to point out risk, everywhere.”While attorneys play a crucial role in pointing out risks, Chad believes that involving them in every step can prolong the negotiation process. It’s essential to strike a balance and know when to involve legal counsel.
The Evolution of Contract Review
- Who’s Involved?:Chad Foster: “Obviously I’m involved. Our estimation team project management is also involved… We want to try to resolve and get this done as quick as possible.”Over the years, the process of reviewing contracts has evolved. While Chad is actively involved, the estimation team and project management also play a pivotal role. The aim is to expedite the process and ensure the best outcome for the client.
- Red Flags in Contracts:Chad Foster: “Yeah, when is our completion time, and I’m going to go backwards from there… I guess it’s hard to say. I guess I’m drawing a blank now.”Chad highlights some of the critical aspects they focus on when reviewing contracts, such as completion time, long lead material items, and the staff involved in the project.
The Changing Landscape of the Construction Industry
- Younger Professionals:Chad Foster: “I see the age continue to get younger… Internships. Very critical.”Chad foresees the age demographic in the industry getting younger. This shift will necessitate extensive training and mentorship. Internships will play a crucial role in bridging the knowledge gap.
- The Role of Technology:Chad Foster: “The technology has changed so much in the last, say, 20 years. And it’s even getting faster now with the A.I.”The last two decades have witnessed a significant technological shift in the construction industry. Companies need to stay updated and invest in training.
Advice for New Professionals
- Internal Discussions:Chad Foster: “Talk through it internally. That’s one of those first steps… It’s communication. It’s one of the biggest things of success.”Before diving into negotiations, have internal discussions. Understand the contract, mark potential issues, and discuss them with the team.
- Seek Guidance:Chad Foster: “There’s so many avenues that we can all do and ask for guidance and help.”Don’t hesitate to seek guidance from higher-level professionals. Open communication is the key to success.
Looking Ahead
- Change is Constant:Chad Foster: “The only constant we have in life is change.”While the industry has seen numerous changes over the years, some constants remain. Professionals need to be adaptable.
Conclusion
The conversation between Jacob and Chad offers valuable insights into the world of contract negotiations in the construction industry. It underscores the importance of understanding, communication, and adaptability in navigating the ever-evolving landscape of the construction world.
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