Indemnification · Construction Contracts · Financial Risk · Subcontractor Protection
Indemnification · Construction Contract Risk · Broad Form Indemnity · Subcontractor
Indemnification Clauses
and What They Cost.
Indemnification clauses in construction subcontracts are among the most financially significant — and most misunderstood — provisions you sign. In the worst cases, a broad indemnification clause can make you financially responsible for injuries and damages caused entirely by someone else on the project. Here's what to look for and what it costs you.
Schedule a Free Call →
See Pricing
SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Signed an Indemnification Clause Without Understanding It
Most subcontractors sign standard GC subcontracts without a detailed review of the indemnification provisions. The language is dense, legal, and easy to skim past. But a broad indemnification clause can require you to defend and indemnify the GC for claims arising from the GC's own negligence — even when your work had nothing to do with the incident.
02
Broad Form Indemnity Creates Insurance Exposure
A broad form indemnification clause that requires you to indemnify the GC for the GC's own negligence may not be covered by your general liability insurance — because most policies don't cover contractually assumed liability for another party's negligence. You've signed an obligation your insurance may not satisfy.
03
You Don't Know the Difference Between Broad, Intermediate, and Limited Forms
Broad form indemnity: you indemnify the GC even for the GC's sole negligence. Intermediate form: you indemnify the GC except when the claim arises from the GC's sole negligence. Limited form: you indemnify only for your own negligence. The form you signed determines your financial exposure — and most subcontractors have never analyzed which form their standard subcontract contains.
How SPM Fixes It
Know What You're Signing Before You Sign
Before executing any subcontract with significant value, review the indemnification provision with your construction attorney. Identify whether it's broad, intermediate, or limited form. Know whether your state enforces broad form indemnity — many states have anti-indemnity statutes that void broad form provisions. The 30 minutes with an attorney is worth it on any contract above your materiality threshold.
Coordinate With Your Insurance Carrier
Your general liability carrier needs to know if you're signing contractual liability that exceeds your standard policy coverage. Some carriers offer additional insured endorsements and contractual liability coverage that can address broad indemnity obligations — but only if you've disclosed the contract terms. Signing a broad indemnification clause without coordinating with your carrier creates an uninsured gap.
SPM Flags Unusual Contract Financial Terms
SPM reviews subcontract financial terms for Executive clients — identifying provisions that create unusual financial exposure including indemnification clauses, liquidated damages, and payment provisions that fall outside standard commercial practice. We're not attorneys and we don't provide legal advice — but we flag the provisions that warrant a conversation with your construction attorney before signing.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Are broad form indemnification clauses enforceable in my state?
It depends on your state. Many states have anti-indemnity statutes that partially or fully void contractual provisions that require a subcontractor to indemnify another party for that party's own negligence. The specifics vary significantly by state.
Megan Shapiro, Esq. can advise on your state's anti-indemnity statute and how it applies to your specific contract language.
Can I negotiate indemnification language in a standard GC subcontract?
Yes — and it's worth trying on significant contracts. Requesting a change from broad form to intermediate or limited form indemnity is a reasonable negotiating position. Large GCs may resist. Smaller or mid-size GCs often have more flexibility. The ask is most credible when it's made before the contract is signed — not after a claim arises.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.