After several discussions and meetings with dealers, it is clear that there is a growing concern about emerging trends in contracts between builders and dealers, including indemnity provisions, additional insured clauses, and warranties that are shifting an unfair amount of liability to dealers. Interested members of NLBMDA's Risk Management Committee recently formed a subcommittee on contracts to address these concerns, and NLBMDA is currently developing educational programs and products on specific liability risks for dealers to look for in builder contracts. NLBMDA's goal is to provide dealers with the resources necessary to make the most informed business decisions and better manage risk throughout their operations. In the meantime, dealers need to make sure to review all contracts carefully and understand their responsibilities and liabilities before signing.

To better understand dealer concerns about builder contracts, we want to hear from you. If you have a specific concern about builder contracts or want to share an example regarding contracts that you think other dealers should hear, please contact T.J. Cantwell at 800.634.8645 or Any examples or concerns NLBMDA shares with the industry will be used anonymously. —T.J. Cantwell is director of regulatory and industry affairs for NLBMDA.