Change orders are critical in the construction industry.

Karalynn draws from decades of experience to explain that only written, signed documents can legally alter a contract's terms. Verbal agreements or side conversations simply don't hold up. Understanding and properly handling change orders is essential to avoid getting screwed on extra work.

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Key Takeaways

1. Change orders are essential legal documents in construction projects, required to alter any terms in a contract, such as scope of work, price, or completion date. Nothing verbal or informal can change the agreement—only a written, signed change order is enforceable.

2. In commercial construction, contracts usually dictate strict, detailed change order processes. It's crucial to understand who can approve change orders, the deadlines for submission and response, and the importance of never performing extra work before a signed change order is in place, or you risk not getting paid.

3. Deductive change orders, or back charges, are used to deduct money for corrections or damages. Contractors should not accept them at face value—instead, they should request proof of costs, payment receipts, and justification. This ensures back charges are legitimate and not arbitrary.

4. Residential contractors have more control over contract terms but must clearly educate homeowners about the change order process. It's vital to set expectations upfront, document every change in writing, and often secure payment for change orders before extra work begins to avoid disputes and "amnesia" from clients at the end of the project.

5. Across all types of construction, being proactive, detail-oriented, and documenting everything in writing are the best defenses against disputes. Asking questions, pushing back on unfair deductions, and ensuring all agreements are properly recorded will greatly reduce the risk of not getting paid or being unfairly charged.

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Key Takeaways 1. The best contracts are simple, clear, and easy for both contractors and clients to understand. You don't need complicated legal jargon—plain language is more effective in setting and managing expectations.

2. Many contractors hesitate to write their own contracts due to fear, lack of confidence in their writing skills, or the misconception that they need a law degree. The episode emphasizes that with a bit of guidance, anyone can draft a practical, protective contract.

3. Each state has its own legal requirements for residential construction contracts, especially regarding things like lien rights and license numbers. Contractors should research and include these requirements to ensure compliance and protection.

4. Using someone else's contract without fully understanding its contents can be disastrous. Contractors should avoid copying contracts and instead draft their own in clear language so they fully understand what's included and can explain it to clients.

5. Contractors don't need a lawyer to create a contract. By writing their own, they have control, peace of mind, and are better equipped to address questions or disputes. This empowers contractors to confidently run their business and protect their interests.

Rely on your instincts before signing any contract. When clients reveal early warning signs or try to change agreements, it's best to walk away. Use clear, simple contracts and set firm boundaries to keep trouble at bay. Never let financial pressure outweigh your judgment—this helps you avoid unnecessary stress, expensive errors, and lawsuits. This episode features a reading from chapter two of Karalynn's newest book, Trust Your Gut.

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Key Takeaways 1. Karalynn emphasizes that intuition plays a powerful role in avoiding future disputes. Even the best contracts can't prevent problematic clients from initiating lawsuits or causing headaches. If a contractor gets a bad feeling about a client initially, it's crucial to take that seriously and potentially walk away.

2. She details several warning signs—such as clients being overly demanding before the contract is signed, trying to change terms after agreement, or treating the contractor as "help" rather than an expert. Recognizing and acting on these red flags early can save contractors from costly mistakes.

3. No matter the urge to accommodate a client or secure work, contractors should stick to their established contract terms and processes. Deviating from one's standard procedures—especially without proper documentation—can lead to legal vulnerability and financial loss.

4. Karalynn suggests practical tips, such as meeting both spouses when working for a family, introducing a design contract before a build contract, and waiting for permit approval before signing a build contract. These steps give contractors more time to assess clients and avoid problematic relationships.

5. Financial pressure might make contractors more likely to disregard warning signs, but Karalynn insists managing expectations, clear contracts, and self-protection should take priority over taking any job that comes along. In the long run, avoiding troublesome clients is more cost-effective than pursuing every potential opportunity.

This episode originally aired on May 02, 2022. In this week's episode, Karalynn is joined by construction attorney, Caroline Beavers, to discuss how the modern subcontract is broken and the best practices to break it down and negotiate it! If you are a subcontractor and tired of getting screwed over by your contracts, tune in and get informed on how YOU can best navigate the modern-day subcontract! The best way to level the playing field is to equip subs with the knowledge and know-how, and this episode does a great job of doing exactly that in a plain-English, easy-to-grasp format. If you find this episode helpful, consider leaving us a like or review, following the podcast, and sharing it with your community! We appreciate you! Find Caroline's Services: https://www.facebook.com/chblegal Follow Caroline on Instagram:@chblegal Follow Caroline on Twitter:@chb_re_co Follow us! Instagram: @cromeenslawfirmpllc Facebook: The Cromeens Law Firm LinkedIn: The Cromeens Law Firm

Karalynn welcomes Adam Goldman to the show to explore the fundamentals of franchising and what it really takes to turn a franchise into lasting wealth. Adam begins by clarifying what sets buying a franchise apart from building one yourself, highlighting how established brands come equipped with tested systems and reliable processes.

In this episode, Adam walks through the typical investments and startup costs involved in franchising. He breaks down the importance of operational support and marketing resources, emphasizing how these tools can make or break a new business owner's success. Listeners will learn about various franchise models—some requiring hands-on management of employees, others relying on subcontractors.

Adam shares his approach to matching clients with the ideal franchise brand, outlining the critical skills and mindset needed to thrive in the industry. The conversation covers income opportunities, royalty fees, and the different options available if you ever decide to exit your franchise.

Beyond franchising, Adam touches on additional strategies for wealth creation, such as investing in index funds and real estate. He explains how these alternatives can complement or diversify a business owner's income stream.

Adam also discusses his coaching process and the resources he provides for those curious about entering the franchising world. Whether you're just starting out or considering a major career move, this episode delivers practical advice and reliable guidance for anyone thinking about franchise ownership.

Follow Adam on YouTube, LinkedIn, listen to The Franchise Consultant Podcast, and learn about his franchise services here.

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Grab your copy of Quit Getting Screwed here, and her new book Trust Your Gut here.

Key Takeaways

1. Franchising is a powerful way to build wealth because it allows individuals to leverage established brands and proven business models, reducing the risks and time involved in starting a business from scratch. The systemization and support provided by the franchisor can make entering entrepreneurship more accessible and scalable.

2. Running a franchise is not a completely passive investment; it requires business acumen, dedication, involvement in operations, and sometimes hiring and managing a team. Franchises come with ready-made systems, but the franchisee is still responsible for execution.

3. Franchises are not limited to food and retail—there is a wide variety spanning multiple industries, including services that utilize subcontractor models, such as maid services or storm-related construction businesses. Each franchise model comes with unique operational structures and requirements.

4. Investing in a franchise can require a significant upfront investment, with costs varying depending on the type (brick-and-mortar vs. service-based). Ongoing royalty fees are standard, and franchisees can earn daily or monthly depending on the business model. The scalability and potential for multiple streams of income make franchises attractive for those looking to grow wealth.

5. Beyond franchising, wealth creation can be bolstered through investments in index funds, real estate, and multiple income streams. Diversification is key; relying solely on one area is risky. Adam Goldman advocates for a balanced approach—investing profits from one venture into others for long-term security.

Break the mold, build your brand. Victoria King Meyer did just that.

Karalynn welcomes Victoria, founder of Progressio Global and The Chemical Show, as they dive into reinventing success beyond corporate walls. Victoria's leap from chemical engineer and industry executive to entrepreneur shines with strategy, storytelling, and bold community building.

Discover why podcasting, events, and mastermind groups power her impact, learn the real challenges of scaling, hiring, and letting go for growth, and explore the transformative role of personal branding for leaders ready to chart their own course.

Key Takeaways

1. Career paths are often non-linear, and pivoting from a corporate environment to entrepreneurship or media ownership requires both a willingness to adapt and continual self-assessment. Victoria's journey from chemical engineer and corporate leader to podcast host and business owner reflects the importance of embracing change, finding your unique strengths, and leveraging accumulated experience in new ventures.

2. Surrounding yourself with a supportive network—whether in the form of mastermind groups, communities, or trusted advisors—is essential for personal and professional growth. Both Jenn and Victoria emphasize that entrepreneurship can be lonely, and intentionally creating or joining peer groups fuels learning, support, and accountability.

3. True leadership is about setting a vision, inspiring others, and serving your community or team, rather than just managing tasks or people. The transition from "doer" to leader is a mental shift that involves relinquishing some control, coaching others, and focusing on impact beyond yourself.

4. For entrepreneurs and leaders, clarity in personal voice and branding is critical. It's important to articulate who you are, what you stand for, and what value you provide, as people are drawn to authenticity. The episode highlights how evolving your message and openly sharing your perspective helps differentiate you and attract the right clients or collaborators.

5. Thinking beyond the present—by creating a business that can stand on its own, outlast your direct involvement, and potentially be sold or handed off—demonstrates true entrepreneurial foresight. The discussion explores balancing personal vision with business longevity, and preparing for succession or sale as a natural business lifecycle step.

Learn more about Victoria's company Progressio Global here.

Listen to her podcast The Chemical Show here, and follow her on LinkedIn and Instagram.

Love the show? Please rate, review and share!

Follow Karalynn Cromeens on Facebook here.

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Learn more about The Cromeens Law Firm here.

Grab your copy of Quit Getting Screwed here, and her new book Trust Your Gut here.

In construction, especially on public works projects, you can't rely on mechanics liens to protect your right to payment. Government immunity takes that tool off the table. That's why, in Quit Getting Screwed, I break down another critical layer of protection: payment and performance bonds. These bonds can be the difference between finishing a job and walking away empty-handed.

Today, I'll walk you through exactly how bonds work, why they're required on public projects, and what every subcontractor needs to know before signing on the dotted line. Because while bonds protect against non-payment and incomplete work, they also come with serious responsibilities—and sometimes, personal financial risk.

You'll hear:

• Why bonds replace liens on public projects and how they actually function.

• The difference between performance bonds and payment bonds—and why you might need both.

• Why bonds aren't insurance and what happens when a claim is paid out.

• Practical tips to protect yourself before you step onto a bonded job.

Key Takeaways

1. Bonds act as security on construction projects, particularly public works where filing a lien is not allowed. They ensure parties like subcontractors and suppliers have a means of getting paid if issues arise, by enabling them to file claims against the bond rather than the property itself.

2. On public projects, general contractors are typically required to obtain both performance and payment bonds. A performance bond guarantees completion of the contracted work, while a payment bond guarantees that all suppliers and laborers are paid, providing financial protection to all parties involved.

3. Bonds are not insurance; if a bond company pays out a claim, they will seek reimbursement from the contractor or subcontractor who secured the bond. This makes bonds a significant personal and financial liability, not a simple protective policy like insurance.

4. Subcontractors must understand the serious obligations that come with obtaining a bond. If a claim is filed and paid out, the bond company will come after them for reimbursement. It's crucial to be aware of what's being guaranteed and to only secure bonds for the remaining contract amount if required during the course of work.

5. Subcontractors should always obtain a copy of the general contractor's bond before starting work, as it allows them to file a claim if unpaid. Additionally, building a relationship with the bond company/agent can prove beneficial if issues arise, providing an opportunity to defend against unjust claims before any payout.

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Karalynn draws on her decades of experience to explain how overlooking contracts can cost businesses everything. Her book, Quit Getting Screwed, was inspired by watching a client lose his business simply because he didn't understand the contract he signed.

Today, she shares crucial tips for protecting yourself before you sign on the dotted line.

Key Takeaways

1. Many subcontractors sign commercial contracts without fully understanding their terms, leading to serious risks, including losing their business. It's crucial to know what you're signing so you can protect yourself from unfair terms and unforeseen obligations.

2. Over time, the lack of negotiation and blind trust in the contracting process has led commercial subcontracts to heavily favor general contractors. Subcontractors must recognize this imbalance and actively engage in understanding and negotiating contract terms to avoid being at a disadvantage.

3. Submitting a turnkey bid (a lump sum for all work) can get you into trouble if you accidentally leave out tasks, as you can be legally obligated to complete missing items for no additional pay. An itemized bid protects you by clearly listing what's included in your price, reducing unexpected obligations.

4. When you receive the subcontract, always check the scope of work against your original bid. Do not assume they match—general contractors may include more work than you quoted. If there are discrepancies, you must address them before signing, or you may be legally required to perform unpaid extra work.

5. If the contract's scope of work is broader than your bid, immediately notify the general contractor in writing and request the appropriate adjustment in price and contract documents. Never rely on promises to fix things "later"; always get changes formalized before signing to protect your business interests.

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Order your copy of Quit Getting Screwed here.

The Quit Getting Screwed Podcast has reached a huge milestone: 200 episodes.

I started this show because too many people in construction sign contracts they don't understand, risking everything they've built—sometimes their entire business.

Today I'll share lessons learned from decades of construction law, talk through ways to avoid litigation, and look back at what 200 episodes have taught us about navigating this industry.

• Learn what happens when the law isn't always fair
• Hear why most disputes never make it to court
• Find out the key contract terms that could save your business

Key Takeaways

1. Persistence and creative legal strategies can help recover owed money even when standard lien timelines are missed. While a mechanic's lien wasn't available for a client, vigorous follow-up and notices resulted in successful debt collection at minimal cost. The central lesson: don't give up easily—explore all available avenues before assuming money is lost.

2. Litigation should be seen as a last resort due to high costs and unpredictability. Settlement, mediation, and reason-based negotiation are strongly encouraged to protect business interests without draining resources. The focus is on resolution, not winning at all costs.

3. A lack of contract comprehension can be disastrous—sometimes even resulting in business loss or bankruptcy. Contracts often contain unfair provisions, but if you sign them, they're generally enforceable. The key lesson is to educate yourself and thoroughly understand what you're agreeing to before signing contracts.

4. Legal concepts don't need to be intimidating or inaccessible. By breaking down complex terms and processes into plain English, more people can protect themselves and succeed in business. This podcast and Karalynn's books aim to empower listeners with practical, understandable knowledge.

5. Core business principles, like leadership, profit, and loss, apply across industries. While the podcast focuses on construction, its lessons in business management and personal experience are broadly relevant. Growth comes from learning, adapting, and connecting with a range of people.

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Grab Karalynn's new book Trust Your Gut here.

Sometimes, a handshake feels like enough.

But in residential construction, failing to put the details in writing can mean litigation threats, withheld payments, and sleepless nights. Today, I'm kicking off our journey through Trust Your Gut, the essential guide for contractors who want to protect their business and peace of mind. We'll dive into real stories, like Carl's, about learning the hard way why clear contracts matter.

You'll hear:

• Why managing expectations is critical, and how most lawsuits begin when those expectations aren't set.

• How contracts are more than legal documents; they're your safety net for your reputation, your time, and your sanity.

• What practical steps you can take to limit risk, including crafting contracts that are thorough yet easy to understand.

Key Takeaways:

1. A handshake is not enough. In residential construction, a signed contract is your shield—protecting everyone involved if disagreements arise.

2. The top cause of contractor legal headaches? Poor management of expectations. Clear, written agreements educate clients on what to expect and prevent costly misunderstandings.

3. Contracts shouldn't require a law degree to read. Simple, plain language is the key—so everyone knows their roles and responsibilities.

4. CYA isn't just jargon. It's about building legal safety nets into your contracts. From limiting damages to updating terms as you learn, smart provisions help you avoid financial pain.

5. Residential projects are risky because homeowners are emotionally and financially invested. Problems can escalate fast, so setting clear boundaries and expectations up front keeps projects on track.

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Learn more about The Cromeens Law Firm here.

Grab your copy of Trust Your Gut here.