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How a Handshake Deal Left One Contractor Empty-Handed

Release Date: 09/01/2025

On this episode of the Quit Getting Screwed Podcast, Karalynn cracks open her book Trust Your Gut and reads Chapter One. She shares the cautionary tale of Carl, a masonry contractor who lost a lawsuit—and payment—after relying on a handshake deal. The lesson? No signed contract, no protection.

Cromeens explains how written agreements set clear expectations and shield contractors legally, urging pros to walk clients through each section in plain language and keep contracts updated. Skip the paperwork, and you risk losing both money and recourse. She closes with an invitation to connect and grab her book for more real-world contractor advice.

Key Takeaways

1. A handshake agreement is not enough in construction projects—a well-written, signed contract is essential to protect all parties, properly manage expectations, and provide a legal safety net if disputes arise.

2. The number one reason contractors get into legal trouble is poor management of client expectations. A clear written contract not only sets out the scope of work and terms but also helps educate homeowners on the construction process, preventing misunderstandings and disputes.

3. Contracts do not need to be overly legalistic or complicated. They should be written in plain, straightforward language that is easy to understand, ensuring everyone knows their responsibilities and obligations.

4. While not a legal term, CYA is about including specific provisions in your contract to limit your liability and protect yourself if things go wrong. This can involve limiting damages, addressing issues encountered in past projects, and updating contracts based on new experiences.

5. Residential projects carry unique risks because homeowners are emotionally and financially invested in their homes. Issues tend to escalate quickly if not managed well since homeowners are present throughout the process and can become highly emotional about perceived problems.

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