Turner Construction Subcontract Analysis: What to Watch For
Turner Construction is one of the largest general contractors in the United States. Their standard subcontract is professionally drafted to protect Turner's interests. Here's what subcontractors need to watch for.
Disclaimer: This is general educational information. Turner's contracts vary by project and region. Always review your specific contract.
Common Turner Subcontract Provisions
Payment Terms
Typical language:
"Payment is conditioned upon Contractor's receipt of payment from Owner."
Risk level: HIGH - This is a pay-if-paid clause
What it means: If the owner doesn't pay Turner, Turner may not pay you.
Negotiation tip: Request modification to pay-when-paid with 45-60 day maximum payment term.
Indemnification
Typical language:
"Subcontractor shall indemnify, defend, and hold harmless Turner...from any claims arising from Subcontractor's Work, whether caused in whole or in part by Subcontractor."
Risk level: HIGH - This is broad form indemnification
State protection: Void in Texas (Insurance Code §151.102), California (Civil Code §2782), and most other states.
Negotiation tip: Cite your state's anti-indemnity statute and request comparative fault language.
Retainage
Typical: 10% retainage until final completion
Industry standard: 5%
Negotiation tip: Request 5% or stepped retainage (10% until 50%, then 2.5%).
Change Orders
Typical language:
"No change order work shall be performed without prior written authorization."
Risk level: MEDIUM - Standard but strict
Watch for: Short notice periods (3-5 days is common)
Delays
Typical language:
"Subcontractor shall not be entitled to any increase in contract sum for delays. Time extension shall be sole remedy."
Risk level: HIGH - No-damage-for-delay clause
Negotiation tip: Request exceptions for Turner-caused delays, bad faith, and active interference.
What Turner Will Typically Negotiate
Based on industry experience, Turner may negotiate on:
What Turner Rarely Negotiates
Red Flags Specific to Turner
How to Approach Negotiation
Sample Negotiation Response
"We've reviewed the proposed subcontract and request the following modifications:
We look forward to your response and are ready to proceed upon agreement."
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