The Miami Herald Law Doctor Column.

By Martin E. Segal, The Miami Herald Knight Ridder/Tribune Business News

May 19--QUESTION: Our business has been very successful, even in the recent economic downturn. Low mortgage rates have convinced us to expand and borrow the money to finance construction of a new warehouse and office complex on land that adjoins our old location. The plan is to build during the summer and have the job completed when our busy winter season starts. Even though our builder's reputation is very good, what if he gets so busy with other jobs or has other problems that cause construction delays? Aside from expensive completion insurance, how can we protect ourselves from loss in our contract?

-- L.B., Coral Gables

ANSWER: One of the most valuable business strategies is to do exactly what your question …