Big Issues Impacting Contractors

Executive Director Jill Bloom and attorney Trent Cotney discuss the legal and business challenges contractors are raising at industry events, including contract language, insurance changes, OSHA enforcement and reputation management. Cotney encourages contractors to strengthen contracts, diversify beyond insurance work and stay proactive to reduce risk and position their businesses for long-term success.

One of the biggest topics was pay-if-paid clauses. Cotney explains that these provisions, common in many commercial construction contracts, can delay payment to subcontractors until the general contractor receives payment from the owner. While some states prohibit these clauses, they remain enforceable in many others. Contractors should carefully review contract language and negotiate more reasonable payment terms whenever possible.

Insurance continues to be another major area of uncertainty. Cotney says contractors should expect more states to adopt restrictions similar to those already seen in Florida, including limitations on advertising, door-to-door sales and assignment of benefits. He also points to an emerging trend that could reshape the industry: insurers beginning to exclude hail damage from certain policies.

Because of these changes, Cotney encourages contractors to rethink their sales strategies. Rather than relying solely on insurance proceeds, companies should begin transitioning toward a hybrid approach that combines insurance work with stronger retail sales. Building that flexibility now can help contractors remain competitive as insurance markets continue to evolve.

Bloom and Cotney also discuss reputation management in an era where online reviews and AI-generated content can quickly influence a company's image. Cotney recommends monitoring review platforms, addressing customer concerns professionally and documenting any agreements reached with dissatisfied customers. As always, he stresses the importance of putting every resolution in writing.

OSHA enforcement remains another area contractors should not overlook. Although federal rulemaking has slowed in some areas, including the proposed heat illness standard, Cotney says inspections continue much as they have for years. Contractors should maintain strong safety programs while watching for future regulatory developments that recognize the realities of construction work without compromising worker safety.

Finally, the conversation turns to indemnity provisions in construction contracts. Cotney explains the differences between limited, intermediate and broad-form indemnity agreements and why contractors must understand the obligations they are accepting. He advises working closely with legal counsel and insurance professionals to ensure contract language aligns with available coverage and minimizes unnecessary exposure.