Everyone is probably familiar with the story the Emperor’s New Clothes. There, the Emperor is not wearing anything but his birthday suit, and yet everyone is afraid to tell him so. Today’s lesson is how to avoid being the clothesless fool by making sure you are covered with appropriate contracts with your subconsultants.

Previously we have talked about the need for a written contract on your construction projects. Usually, the focus is on the contract agreement with the Project Owner. Just as important, however, is the contract with your subconsultant.

A recent case brought to the attention of the E&O carrier Victor O. Schinnerer demonstrates what can happen when you have a signed contract with the Project Owner, but your subconsultant contract is not yet formalized.

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