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Non-solicitation agreements can protect construction companies

On Behalf of | Oct 17, 2022 | Non-Compete Agreements

For construction companies, word of mouth is everything. There are so many businesses helping to construct and remodel buildings that it can be difficult to establish yourself in the industry at first. You need your clients to recommend you to friends, family or their business suppliers so that you have enough projects to generate profit.

Many construction companies start because someone working in one of the construction trades wants to become their own boss. Some workers branching out to start their own companies will take steps that damage the businesses that gave them their start in the construction industry. Non-compete agreements can help prevent your current employees from starting a competing business or going to work for one.

Non-solicitation agreements seem less cumbersome to new hires while still creating crucial protections for you as a business owner or operator. That makes them an ideal tool for protecting your business.

What is a non-solicitation agreement?

The exact impact of your non-solicitation agreement will depend on the language that you use. Some companies specifically tailor their documents to prevent their employees from soliciting customers or clients for work after leaving the business. That can certainly help prevent your company from losing new projects and long-term clients because of one former worker.

However, clients aren’t the only thing that your employees may try to take away from your business when they get a new job or start their own company. Your talent is also a concern. Non-solicitation agreements can also address your employees and prevent staff members from offering new jobs at a company they own or have gone to work for to their former co-workers.

Restrictive covenants are crucial to your continued competitiveness

Restrictive covenants like non-solicitation agreements and non-disclosure agreements can help protect the investment you have made in your construction company. You never know when a former worker could do something that will damage your business, so the best approach is often to proactively protect against the risk of someone misusing their resources or connections obtained while working for your company.


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