What is a pay-if-paid clause in construction contracts?

A pay-if-paid clause makes the general contractor's obligation to pay the subcontractor conditional on receiving payment from the owner. If the owner doesn't pay, the subcontractor may have no legal right to collect. Pay-if-paid is void in California, New York, North Carolina, and several other states. SubShield automatically detects these clauses and tells you if they're enforceable in your state.

What is broad indemnification in construction contracts?

Broad form (Type I) indemnification requires the subcontractor to indemnify the general contractor even for the GC's own negligence. This creates unlimited liability exposure. Over 40 states have anti-indemnity statutes that void these clauses. SubShield identifies them and cites the specific statute that voids them in your state.

How does SubShield analyze construction contracts?

Upload your subcontract (PDF, Word, or paste text) and SubShield's AI analyzes it in about 60 seconds. You get a risk score (1-10), identification of 50+ risky clause types, negotiation language to propose to your GC, and state-specific legal information.

Is SubShield a substitute for a construction attorney?

No. SubShield is an AI-powered educational tool that helps subcontractors understand their contracts better. For high-value contracts ($500K+) or complex disputes, consult a licensed construction attorney. SubShield costs $47 per analysis; attorney review costs $300-500+. Use SubShield for initial screening, attorney for final review.

What states does SubShield cover?

SubShield provides analysis for all 50 US states with specific knowledge of state lien laws, anti-indemnity statutes, prompt payment act requirements, retainage caps, and pay-if-paid enforceability which varies significantly by state.

How much does SubShield cost?

SubShield offers a free trial with one full analysis per month. Single reports cost $47. Pro Monthly is $97/month for unlimited analyses. Pro Annual is $797/year for unlimited analyses. All paid plans include a 60-day money-back guarantee.

What is a no-damage-for-delay clause?

A no-damage-for-delay clause prevents the subcontractor from recovering monetary damages when the project is delayed, even if the delay was caused by the GC. The only remedy is a time extension, not compensation for increased costs. These clauses can cost subcontractors $23,000+ on average. SubShield detects these clauses automatically.

How is SubShield different from using ChatGPT to review contracts?

SubShield is purpose-built for construction subcontracts with 50+ clause type detection specific to construction, state-specific legal information for all 50 states, industry benchmarks (AIA, ConsensusDocs standards), negotiation language templates, and a GC reputation database. General AI tools lack this specialized construction knowledge.

Change Order Management: How to Get Paid for Extra Work

Change orders are where subcontractors either make or lose money. Here's how to document, submit, and actually get paid for extra work.

The Change Order Problem

Studies show that:

35% of all extra work goes unpaid

Average change order dispute is $45,000

Most denials cite "lack of documentation"

The work gets done. The documentation doesn't.

What Counts as a Change Order?

Extra work includes:

Scope additions not in your contract

Work caused by design changes

Conditions different from what was shown

Delays caused by others

Acceleration to meet compressed schedules

Step 1: Know Your Contract

Before work starts, understand:

What's the notice requirement? (24 hours? 7 days?)

Who do you notify? (PM? Superintendent?)

What format is required? (Written? Email? Their form?)

Missing any of these can void your claim.

Step 2: Document in Real Time

At Discovery

Take photos with timestamps

Note the date, time, location

Identify who was present

Describe what's different from contract documents

Within 24 Hours

Send written notice to required parties

Reference specific contract provisions

Request direction on how to proceed

State that you reserve the right to claim additional costs

Sample Notice Language

"Per Section 8.2 of the Subcontract, we hereby notify Contractor of changed conditions discovered at [location] on [date]. The conditions differ from Contract Documents in the following ways: [describe]. We request direction on how to proceed. This notice preserves our right to submit a change order request for any additional costs incurred."

Step 3: Track All Costs

For each change, maintain:

Daily time sheets for affected labor

Equipment logs

Material invoices

Rental receipts

Photos of installed work

Step 4: Submit Proper Pricing

Change order pricing typically includes:

Labor (with burden)

Materials (with handling)

Equipment

Subcontractor markup (typically 10-15%)

Extended general conditions if applicable

Step 5: Follow Up Relentlessly

Set calendar reminders:

7 days: Follow up on submission

14 days: Escalate to senior PM

21 days: Formal notice that silence = approval (if your contract allows)

30 days: Dispute notice

Contract Clauses to Watch

Red Flags

"No claim without prior written approval"

"Waive all claims not submitted within 7 days"

"No change order work without written authorization"

Better Language

"Failure to respond within 14 days constitutes approval"

"Subcontractor may proceed with disputed work under protest"

"Oral directives shall be confirmed in writing within 48 hours"

What to Do When Change Orders Are Denied

Request written denial with specific reasons

Continue documenting all costs

Reserve rights in writing on each pay application

Don't sign lien waivers that waive dispute rights

Consider mediation before litigation

The Hidden Change Orders

Watch for change orders hiding in:

RFI responses that add scope

Drawing updates without formal notice

Verbal instructions from superintendent

Coordination meetings creating new requirements

If it's not in your contract, it's a change order.

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Automate Your Protection

SubShield identifies change order provisions in your contract and highlights language that limits your ability to recover extra costs.

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*Have a change order success story or horror story? Email us at hello@trysubshield.com.*

Change Order Management: How to Get Paid for Extra Work

Change Order Management: How to Get Paid for Extra Work

The Change Order Problem

What Counts as a Change Order?

Step 1: Know Your Contract

Step 2: Document in Real Time

At Discovery

Within 24 Hours

Sample Notice Language

Step 3: Track All Costs

Step 4: Submit Proper Pricing

Step 5: Follow Up Relentlessly

Contract Clauses to Watch

Red Flags

Better Language

What to Do When Change Orders Are Denied

The Hidden Change Orders

Automate Your Protection

Ready to Protect Your Next Contract?

More Resources

Turner Construction Subcontract Analysis: What to Watch For

Lien Waivers in Construction: The Complete Guide for Subcontractors

Retainage in Construction: What Subcontractors Need to Know