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Adams & Reese Partner and Construction Team Leader Trent Cotney appears on the podcast, “If Walls Could Talk”, hosted by Jill Bloom of Walls & Ceilings, to discuss legal trends shaping the roofing and construction industries. The conversation addresses the evolving legal and regulatory environment for contractors, including contract terms, insurance changes, reputation management, OSHA enforcement, and indemnity obligations.
Pay-if-Paid Clauses
Cotney begins by discussing contract terms, specifically pay-if-paid clauses, which can delay subcontractor payment until the general contractor receives payment from the owner. He explains that these provisions remain enforceable in many states, even though some states prohibit them, and advises contractors to review contract language carefully and negotiate for payment within a reasonable time where possible.
Insurance and Storm-Related Work
The discussion then turns to changes in the insurance market, particularly in storm-related work. Cotney warns that restrictions similar to those adopted in Florida may spread to other major storm markets. He identifies several types of restrictions affecting insurance-driven work, including limits on certain advertising, door knocking, assignment of benefits, and recovery of attorneys’ fees on some claims. He also notes that some insurers are beginning to exclude hail damage from certain policies, which could significantly affect contractors that rely on insurance-funded restoration work.
Cotney recommends that contractors move toward a hybrid business model that looks to insurance first but does not make payment entirely contingent on insurance proceeds. He says contractors should preserve the ability to collect directly from homeowners or customers if insurance does not pay.
Reputation Management
The discussion also covers reputation management in an environment where online reviews and AI-generated content can quickly affect a company’s image. Cotney advises contractors to monitor review platforms, respond professionally to customer concerns, and document any resolution with dissatisfied customers in writing.
OSHA Enforcement and Regulatory Developments
On OSHA, Cotney says enforcement remains active even as some federal rulemaking, including the proposed heat illness standard, continues through the regulatory process. He encourages contractors to maintain strong safety programs while watching for future regulatory developments that reflect the practical realities of construction work.
Indemnity Obligations
Finally, Cotney explains the importance of indemnity provisions in construction contracts. He distinguishes among limited, intermediate, and broad-form indemnity and emphasizes that contractors need to understand the liability they are accepting. He recommends working with legal counsel and insurance professionals to ensure indemnity language aligns with available coverage and does not create unnecessary exposure.
Practical Takeaway
Overall, the episode is a practical issue-spotting conversation for contractors in the broader construction markets. Cotney’s main takeaway is that contractors can better protect themselves by negotiating payment and indemnity terms carefully, adapting to insurance market changes, monitoring OSHA developments, proactively managing online reputation, and putting resolutions and releases in writing.
Listen to the full episode here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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