An unduly burdensome contract for a roofing contractor on a job going south can put that roofer out of business. After all, it’s the contract that determines which party accepts which risks. It’s through the construction contract that a sophisticated owner or general contractor attempts to shift risks from itself to the roofing contractor. Roofers need to be aware of the risk shifting in each instance.
Among the contract provisions where the risk shifting can potentially put a roofing contractor out of business are the payment terms, the indemnity provision, the insurance requirements, and scheduling.