Stop Signing Blind: 3 Contract Risks Every Subcontractor Should Review | Kendall Hoyd, FairBuild AI
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You checked the scope. You checked the price. But what did you actually agree to?
In this episode of The Subcontractor Project, Tara Cristel sits down with Kendall Hoyd, founder and CEO of FairBuild AI, to talk about one of the most overlooked risks in commercial construction: the subcontract itself.
Kendall brings more than 30 years of construction leadership experience. FairBuild AI grew out of lessons he learned the expensive way: contract language matters.
Tara shares her own wake-up call after a GC stopped paying and roughly $150,000 was outstanding. When she went back to the subcontract looking for protection, she realized the agreement gave her very little leverage. That experience changed how she approaches every contract.
They discuss:
• Pay-if-paid vs. pay-when-paid
• Why subs need a defined right to suspend work for nonpayment
• How GCs respond to redlines
• Net 30 payment and better GC relationships
• Schedule risk, project delays, labor increases and material escalation
• Indemnity clauses and one-sided risk transfer
• How AI can help with contract review without replacing legal judgment
• How to negotiate without treating your customer like an adversary
CHAPTERS
00:00 Contractor Compliance Co.
00:56 Meet Kendall Hoyd of FairBuild AI
02:08 What FairBuild AI Does
03:12 The Contract Lessons That Led to FairBuild
05:07 Tara's $150,000 Contract Wake-Up Call
07:07 FairBuild for Subs & Suppliers
08:54 How FairBuild Changed Tara's Contract Process
11:01 What Happens When You Send a GC Redlines?
13:58 Finding GCs Who Negotiate - and Pay Net 30
15:42 Trust Between GCs and Subcontractors
16:37 Fair Contracts vs. One-Sided Contracts
18:44 Top Contract Terms Subs Should Focus On
19:12 Payment Terms & Pay-If-Paid
20:42 Indemnity & Risk Transfer
21:58 Project Delays, Labor Increases & Material Escalation
24:33 Why General AI Isn't Enough for Contract Review
25:27 "Sign It or Lose the Job"
26:35 How Kendall Approaches Contract Negotiations
27:30 FairBuild's Negotiation Guide
29:06 You Don't Need the Perfect Agreement - Just a Better One
29:37 FairBuild AI Discount - Code TARA10
CONNECT WITH KENDALL
LinkedIn: https://www.linkedin.com/in/kendall-hoyd-6059809/
FairBuild AI: https://www.fairbuild.ai
Email: Kendall@fairbuild.ai
TRY FAIRBUILD AI
Use code TARA10 for 10% off your first purchase at https://www.fairbuild.ai
Affiliate disclosure: Tara has an affiliate relationship with FairBuild AI and may receive a referral fee from qualifying purchases made using her code.
CONTRACTOR COMPLIANCE CO.
Back-office support built for contractors: bookkeeping, A/R, A/P, payroll, certified payroll, monthly financial reporting, cash-flow planning, contract-review support and practical office systems.
Facebook: https://www.facebook.com/profile.php?id=61584381584303
ABOUT THE SUBCONTRACTOR PROJECT
Real conversations about contracts, payment, risk, retainage, cash flow and the business side of commercial construction.
Disclaimer: This episode is for educational and informational purposes only and is not legal advice. FairBuild AI is not a law firm and does not replace advice from a qualified attorney.