That DIY contract template from LegalZoom cost me a $12,000 headache

I used one of those boilerplate subcontractor agreements for a job in Denver last spring. Turned out the lien waiver clause was totally backwards for Colorado law and the GC refused to pay until I fixed it. Had to pay a real lawyer $800 to rewrite it and still lost 3 weeks of cash flow. Anyone else get burned by those cheap online forms?

3 comments

3 Comments

ericcraig15d ago

Got burned by something similar but different state, different issue. The form I used had a "prevailing wage" section that referenced federal rules but nothing about Colorado's state-specific Prevailing Wage Act. Ended up in a stupid back and forth with the contractor over whether I was even supposed to be paying Davis-Bacon rates. A real lawyer said that part of the form was basically useless for local work and I had to scrap the whole thing. Pain in the neck.

nathankim16d ago

Actually the secretary of state site doesn't handle lien laws, that's usually in your state's legislative or judicial branch site.

wesleyflores16d ago

Yeah the lien waiver thing is a killer. I had a similar issue with a Texas job where the online form had no specific deadline for the GC to respond to my notice. They just sat on it for six weeks. Cost me two months of payments. Now I always check my state's mechanics lien laws first. Usually the secretary of state website has the basics for free. Much cheaper than getting burned.