Learn How to Navigate the Pitfalls of Steel Building Contracts

p>Some metal building manufacturers requireproperty...including claims or actions founded in whole
customers to sign lengthy contracts with confusingor in part upon the alleged acts, omissions or
terms and conditions written in hard-to-read fine printnegligence of seller, seller's representatives, or the
and confusing terms. These contracts are notemployees, agents, invitees, or licensees thereof."
designed to protect you, the customer. They areWhat They Really Mean: This requires you, the
solely for the manufacturer's benefit. You need tocustomer, to pay the manufacturer for all expenses
ask yourself, "What are they afraid of?"including lawsuits incurred by the manufacturer from
If you need to hire a lawyer to read and explain thethe manufacturer's own mistakes and negligence.
contract before you sign it, you should think twiceOur Advice: Never agree to this. This provision is not
before you purchase a building from the sameonly unfair, but it could wipe you out financially. This
company that gives you an incomprehensiblemeans that you will have to pay the manufacturer
one-sided contract.for all losses it incurs and in any amount, even if the
Before you do anything, ask to see a copy of theirlosses are caused by the manufacturer or its friends.
contract. If they won't show it to you, ask yourself,The Incredible Vanishing Product Warranty
"Is this the right company for me?" If they do shareFine Print: "Seller warrants only that its products are
it, do you understand it? Is it clear? Do you need afree from defects in materials and workmanship on
magnifying glass to read it? Why do they treat youthe date of shipment from its plant. The Seller's
like the enemy?obligations under this warranty shall be limited to
You are a valued customer and should be treated likerepairing or replacing (but not dismantling and
one. Below are some examples of the "fine print"installing) such products which prove to be defective
from an actual contract so you can learn what thewithin one (1) year from the date of the original
legal pitfalls are in the steel building industry and howshipment by Seller, provided, however, Buyer has
to avoid them.performed maintenance for the general upkeep of
Stay Off Purchase Price Escalatorthe building. Any products repaired or replaced shall
Fine Print: "Further, buyer hereby agrees andbe subject to warranty only for the remainder of the
stipulates that, in the event seller receives notificationtime applicable to the original warranty period. There
of a scheduled price increase from any of itsare no other warranties, expressed or implied, which
suppliers between the date of this agreement andextend beyond the description on the face of this
the date scheduled for delivery of the materialscontract, including any warranties or merchantability
covered hereby, seller reserves the right, in its soleor fitness for a particular purpose, and in no instance
discretion, to increase the purchase price statedshall seller be responsible for any indirect or
herein in an amount corresponding to said priceconsequential damages or loss of any kind
increase."whatsoever."
What They Really Mean: The manufacturer canWhat They Really Mean: The manufacturer's
increase the previously agreed upon price at anywarranty is for one year from the date of shipment
time, with no prior notice to, or recourse by, you.and there is no warranty for accessory parts, such
Our Advice: Never agree to this. Perhaps theas doors, hardware, windows and ventilators.
manufacturer's strategy is to bury this in the contractOur Advice: Many contracts limit the manufacturer's
hoping you will never read or understand it with theliability to a fraction of the building purchase price and
expectation of charging you more later. Run, don'trequire the buyer to release the manufacturer from
walk, from this steel building manufacturer. This isthe manufacturer's negligence. The one year
unconscionable.warranty offered under this contract is not long
Fine Print: "In the event of cancellation or otherenough. The manufacturer should stand behind its
breach of Buyer's obligations under this Contract, theproduct. You could wind up paying your hard earned
deposit, at minimum, shall be retained by Seller asdollars for your building and be left holding the bag if
liquidated damages to cover Seller's expenses ofthere is a problem with it. Ask for the warranty and
order processing, engineering, detailing, purchase ofget it in writing.
material, fabrication, sales commissions and anyWe Can Make Your Life Miserable
applicable incidental, consequential and lost profitsFine Print: "The parties agree that all disputes or
damages; provided, however, that in no event willmatters whatsoever arising under, in connection with
the amount payable by Buyer in connection withor incident to the Contract shall be litigated, if at all, in
same be less than $2,500.00."the District Court of [Name] County, [State], or if
What They Really Mean: You should have read andfederal jurisdiction is mandatory, in the U.S. District
understood our contract before we pressured andCourt for the District of [State] at [City]. Buyer
rushed you into signing it. Too bad, you lose yourhereby waives any jurisdiction or venue objections
deposit if you don't do as we say.that Buyer may have to any such action or
Our Advice: Always read and understand anyproceeding being brought in any such court."
contract before you sign it. If you need to take it toWhat They Really Mean: You can be sued by the
a lawyer first, ask the manufacturer if they willmanufacturer in another state. This means that they
reimburse you. If you don't understand it, don't sign it.want to stack the deck against you, forcing you to
Beware the Up-Selltravel long distances to defend yourself or assert
Fine Print: "It is solely Buyer's responsibility to verifyyour rights. They are hoping you will give up first.
that the building codes stated on the front of theOur Advice: All of this adds up to great cost and
Purchase Order comply with local building andexpense to you. Don't let them make your life
insurance codes. Buyer understands and agrees thatmiserable. Never agree to this.
local ordinances are outside of the scope of theFirst Thing We Do, Let's Kill all the Lawyers
Seller's knowledge and that Seller assures only thatFine Print: "In the event Buyer in any manner defaults
the building will meet specific loadings as stated in theor breaches the terms and conditions of this
Purchase Order."Contract, or threatens to do same, or in the event it
What They Really Mean: The manufacturer is sayingbecomes necessary for Seller to employ an attorney
it does not know if your building is designed and builtto enforce any provision of this Contract, obtain
to comply with local wind, snow and seismicinjunctive relief, collect damages on account of a
requirements because it is leaving that up to you tobreach or threatened breach of this Contract, or if
figure it out.Seller prevails in a tort action commenced by Buyer.
Our Advice: This can be a costly provision for you,Buyer shall pay to Seller, Seller's attorney fees and
the customer. You are relying on the manufacturercosts."
to design the building to meet your local, wind, snowWhat They Really Mean: You have to pay the
and seismic requirements. This information is readilymanufacturer's attorneys fees when they hire a
available to the manufacturer. Don't let them shiftlawyer.
that burden to you. The manufacturer is the expert,Our Advice: This is a costly provision for you, the
why should you be responsible. That is what you arecustomer. The manufacturer will often use this as
paying them for. When you finally figure out that theleverage to get you, the customer, to drop legitimate
specified snow load of the building does not meetclaims to avoid the risk of paying its exorbitant legal
your requirements, it will often cost you tens offees.
thousands of dollars to correct the problem. This isYou Want Me to Do What?
called an "Up-Sell" because the manufacturer will useFine Print: In order to save time and money, the
this to Up-Sell you into a more expensive building.parties voluntarily waive their right to a jury trial in
Stay off the Trap Door (AKA You Pay More if theany litigation arising out of this Contract.
Manufacturer Makes a Mistake)What They Really Mean: If there is a dispute, they
Fine Print: "Buyer shall hold Seller harmless from anydon't want a group of your peers to decide.
loss, costs, claims, suits, damages, and attorney'sOur Advice: The 7th Amendment to the U.S.
fees arising from any alleged or real injury (includingConstitution, gives each American the right to a jury
death or total destruction) to any person or propertytrial. You should never have to waive your
which arises out of work performed or materialsconstitutional rights to purchase a steel building.
supplied hereunder. Buyer assumes entireThink twice before purchasing a building from a
responsibility and liability for any claims or actionsmanufacturer that makes it difficult for you to
based on or arising out of injuries, including death, tounderstand their contract using crafty legal jargon -
persons or damages to or destruction ofyou may not get what you thought you purchased.