Major projects like the Hyundai Metaplant in Bryan County, Rivian’s $5 billion EV manufacturing campus east of Atlanta, Yamaha’s newly announced U.S. headquarters move to Georgia, logistics expansion around the Port of Savannah, and a growing network of battery and supplier facilities across the state are driving unprecedented demand for contractors, suppliers, and logistics companies. It’s no surprise that Georgia has been named the “No. 1 State for Business” for the 12th consecutive year.

But with growth comes risk. In 2026, a handshake deal or outdated contract template can quickly become a liability. Here are five contract issues driving disputes across Georgia today.

1. The "Precision Scope" Clause

“Scope creep,” the uncontrolled, undocumented expansion of a project’s requirements beyond the original contract, is the number one cause of non-payment disputes. It occurs when project requirements expand without corresponding changes to price, timeline, or deliverables, often leading to payment disputes, delays, and litigation.

To avoid this problem, your contract should define exactly what is excluded just as clearly as what is included. In the rush to meet project deadlines, assumed responsibilities are where lawsuits are born.

2. The Modern Force Majeure (Supply Chain, Labor, & Tariffs)

In today’s environment, projects can stall due to overseas conflicts, supply chain disruptions, port congestion, labor shortages, or sudden tariff changes. Traditional “Acts of God” clauses, originally designed to address natural disasters, often fail to cover these modern disruptions.

Contractors should update their force majeure provisions to explicitly address risks such as labor shortages, supply chain delays, and tariff-related interruptions.

3. Georgia-Specific Lien & Notice Compliance

Georgia’s lien laws are strict. One missed deadline or incorrect form can strip you of your rights to get paid and derail an otherwise valid claim. If your contract templates are more than a couple of years old, they may no longer comply with current statutory requirements.

Contractors should confirm that their contract and lien documents strictly align with Georgia’s statutory requirements, particularly O.C.G.A. § 44-14-366 and provisions outlining lien notices and enforcement.

4. The "Georgia First" Dispute Resolution Clause

Many supplier agreements contain “choice of law” clauses, dictating which state's laws apply and where disputes are heard. Courts generally enforce these clauses, meaning you may be forced to litigate in the supplier’s home county or state. 

Many standard contract templates also default to arbitration in another state. Make sure you understand the pros and cons of arbitration, and how that could potentially impact your business, before opting for arbitration in your contract.

You can work with an attorney to assess your agreement and explicitly include that all disputes be litigated right here in Georgia courts. It keeps costs down and places disputes before judges or arbitrators who understand Georgia’s construction and business environment.

5. Indemnity & Insurance Pass-Through

Without properly drafted indemnity language, a contractor can end up responsible for claims caused entirely by a subcontractor’s negligence.

Equally important, overly broad indemnity clauses may be unenforceable under Georgia’s Anti Indemnity Statute, leaving contractors exposed when disputes arise.

Contractors should ensure their agreements include narrowly tailored indemnity provisions that comply with Georgia law and require that they be named as an Additional Insured on all applicable subcontractor insurance policies.

Is your current contract a shield or a target?

Do not wait until a demand letter arrives to find out. By then, the damage may already be done. Contact Allan Galis at (912) 236 0261 to discuss a Contract Stress Test for your business. A proactive review today can help prevent costly disputes tomorrow.