How good people get caught out by bad clauses, and what to do before it’s too late.

I still remember the first time a client called me, voice shaking, saying,

“I just got served a adjudication notice that I wasn’t expecting. We thought it was all sorted.”

They had signed what they believed was a ‘standard’ contract. They’d worked with the client before. Everything seemed straightforward, until it wasn’t.

And sadly, this kind of story isn’t rare. In fact, it’s become far too common.

Most construction professionals pride themselves on their site management, cost control, and technical know-how.

But the most expensive mistakes I’ve seen in my career didn’t come from poor workmanship or blown budgets.

They came from:

• “Standard” clauses that were never read properly.

• Terms like "time at large," "liquidated damages," or "contractor’s risk" that weren’t fully understood.

• Handshake deals backed by vague paper trails.

  
  

By the time problems surface, delayed payments, denied variations, and disputes over EOTs, the written contract becomes the battlefield. And guess what? The other side usually knows exactly how to use it.

Many contractors dedicate countless hours to securing contracts, yet they often spend less or even zero hours going through the contract thoroughly, and often find out too late that specific terms are unfair.

It’s Not the Work That Breaks You.

It’s the Words You Didn’t Catch.

One major reason contractors typically discover unfair terms too late is the language used in contracts. Contracts are filled with legal jargon that can be hard to interpret. Many contractors, regardless of their expertise, might not fully understand legal terminology.

For example, a contractor might overlook a clause stating that they are liable for any damages caused by their work, even if those damages are not their fault. A detailed examination of contracts is essential. Ignoring complex words and phrases can lead to serious misunderstandings. In fact, studies show that proper contract reviews can reduce the likelihood of disputes over contract terms by up to 30%.

“We Just Trusted It Would Work Out.”

If I had a dollar every time I heard that.

The reality is: in the New Zealand construction scene, especially among smaller contractors and subcontractors, there’s this cultural resistance to being ‘too formal.’

People say things like:

“We’ve worked together before, it’ll be fine.”

“I don’t want to seem difficult by questioning the terms.”

“It’s just a small job, not worth the legal drama.”

But that handshake trust doesn’t hold up when margins shrink and problems appear.

And by then, you’re not negotiating anymore. You’re defending yourself against the other party, and the only thing that you can reply on, is the contract that you didn't read.

Why This Matters More Than Ever

Because the market has changed.

Margins are tighter. Material costs still fluctuate. Cash flow is unpredictable. And clients, especially the big ones, are shifting more risk onto contractors than ever before.

We’re no longer in a cycle where you can absorb a few mistakes and make it up on the next job.

In fact, you may have seen the headlines:

One in four company liquidations in New Zealand right now are construction firms.

Let that sink in. One in four. That 25%.

Many of them didn’t go under because they were bad at building, they went under because:

• A few payment delays turned into months of chasing invoices.

• One bad contract with unclear risk allocation wiped out their buffer.

• They didn’t have time (or confidence) to push back on unfair terms.

And I know from working with small to mid-sized businesses that this isn’t just about dollars. It’s personal. It’s someone’s family income, someone’s staff they’ve promised work to, someone’s reputation they’ve spent years building.

In a market like this, contracts aren’t just formalities.

They’re your frontline defence.

We can’t afford to treat contract review like a tick-box exercise anymore. We can’t keep assuming everything will work out because it always has before. This market isn’t forgiving anymore, and hope is not a strategy.

This Isn’t About Blame,

It’s About Being Ready

Let’s be clear: I’m not here to point fingers.

Most people in this industry didn’t come from legal or commercial backgrounds. They came from the tools. From the site. From experience earned the hard way, through long hours, tough projects, and delivering under pressure.

So no, this isn’t about making anyone feel bad for not knowing. It’s about helping you avoid learning the really expensive way.

Because I’ve seen it up close: smart, capable contractors and consultants losing sleep, losing money, or worse, losing their business, simply because of one line in a contract they didn’t notice. Or because they relied on goodwill that disappeared when things got tough.

I’ve seen too many good people get caught out by bad assumptions. And I genuinely don’t want that for you.

So if you're reading this and thinking:

“We probably should review how we’re signing contracts.”

“We kind of just copy-paste the same terms every time.”

“We rely too much on trust and not enough on documentation.”

You’re not wrong.

And you’re definitely not the only one.

I’ve worked with dozens of people in the exact same position. Some caught it early. Others called me when it had already blown up. But no matter where you’re at, here’s what I want you to hear:

• It's not too late to tighten things up.

• You don't have to overhaul everything overnight.

• You just need to start taking this seriously now, before it costs more later.

And if you’re not sure where to start, please feel free to reach out.

No judgement. No pressure. Just clear, calm, practical support from someone who’s walked this road with others like you.

Taking Proactive Steps

What you could do to reduce your risk from tomorrow:

• Before you price a job, read the contract like your margin depends on it, because it does.

• If a clause doesn’t make sense, ask. That’s not being difficult, that’s being responsible.

• And if you’re not sure what would happen if the job goes wrong… that’s your sign to pause.

In Closing

The path of a contractor can be rewarding yet filled with challenges, especially regarding contracts.

If you find yourself in a tough position or you are not sure what to do next, send me a message.

I don’t do scare tactics. Just practical, clear and direct guidance on how to protect your work and your peace of mind.

Because it’s not just about winning the project.

It’s about still wanting to build the next one.