A recent court decision confirms that despite contract clauses precluding unwritten changes, a site visit between a contractor, property owner, and subcontractor could have resulted in a new, second contract between the parties, entitling the subcontractor to payment for additional work. This is a great case that highlights the impact a common site meeting can have on the payment rights of everyone involved.
Read moreProtect the Bottom Line With a Price Escalation Clause
One of the major headlines in 2020, in construction, that did not directly involve the coronavirus, was the dramatic increase of lumber prices across the country. From April to September 2020 alone, general construction lumber prices increased 130%. Specific types of dimensional lumber increased as much as 158%. And while prices corrected slightly in the beginning of the fourth quarter of 2020, at the end of the year, prices were back on the move upward.
Read moreCourt Rules Subcontractor Entitled to Payment for Extra Work Due to Ambiguities in Scope of Work Provision
A case decided in Florida last week saw a court side with a site development contractor over a $33.000 dispute based on whether the original contract included certain demolition and replacement of portions of a parking lot due to an imprecise description of work. The court’s ruling does a great job of walking through many of the consideration general contractors and subcontractors need to take into account when starting a project.
Read moreSubsequent Purchaser Not Required to Arbitrate Claims Over Construction Defects
In a decision released yesterday, the Fourth District Court of Appeal held that a second purchaser of a new construction home was not required to arbitrate its claims for construction defects, despite receiving an assignment of the homebuilder’s warranty from the original purchaser of the home.
Read moreMiami Court Decides that Contractor Forfeits Lien for Failing to Include State and Local Contract Disclosures
Recently a Miami-Dade court entered judgment in favor of a property owner and dismissed a general contractor’s lien claim because the general contractor failed to include disclosures required under Florida state law and Miami-Dade county codes. The case is a reminder to periodically check your contracts to make sure they are compliant with the laws where you do business!
Read moreHow to Keep Text Messages from Changing Your Contract Terms
A project manager’s cell phone chirps as she is on a busy jobsite. She glances down and sees that it’s the electrical subcontractor on the project asking a question about running wire in a different location to accommodate another trade’s work. She looks at the plans and texts back that the change is fine and to proceed. The electrician moves forward with the work. The following month, the electrician submits a change order for some additional time and materials required by running the wire in a different location, claiming the change was approved by the project manager. Was it?
Read moreThis Job Would Be Great if it Wasn’t for. . . →
Managing Owners and Their Expectations With Specific Contract Provisions
Read moreContract Provisions That Help Manage Risk on Long-Term Projects →
Few things can dampen the thrill and promise of a newly closed construction deal than the realization that it could quickly become a losing proposition for the contractor depending on economic and other conditions. In an era of instant information, constantly adjusting markets and political extremes, projects that start under one set of assumptions or conditions can occur or conclude under much different ones. While no one has a crystal ball, there are contractual provisions that can provide clear guidance in the face of many “what ifs” that can arise in construction.
Read moreAnatomy of a Remodel Gone Bad
A recent final judgment entered in Miami is a textbook example of what can go wrong when you mix a bad contract, a demanding homeowner, an angry contractor, and a remodeling project gone sideways.
Read moreAre Your Warranty Issues Subject to Arbitration?
While you may intend for contract disputes to go to arbitration, if you’re using a third-party, structural warranty, the terms of the warranty may prevent that from happening.
Read moreConstruction Lien Waiver Provisions Contractors Should Be Using
It is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin
Read moreTechniques For Resolving Construction Disputes
With most construction projects involving dozens, if not hundreds, of companies and individuals, it is no surprise that conflicts arise that are not always able to be resolved on the jobsite. But these conflicts need not always reach the court room or cost thousands (or much more) to resolve. With some planning, contractors can build faster and less expensive dispute resolution options into their project so they can spend more time keeping the project moving and less time arguing over who is right.
Read moreHow to Avoid Personal Liability for a Fraudulent Lien
There are many benefits to using a corporation when operating a construction business. Avoiding personal liability for improper liens is just one of them.
Read moreUse Caution When Trying to Get Change Orders for Changed Conditions
What happens when you find something unexpected at a project? Be careful how you address them or you could end up in violation of your contract.
Read moreSubsequent Owner of Property May be Able to to Sue for Hidden Construction Defects
When a project goes sideways and the parties settle, a subsequent property owner may still be able to sue for latent defects.
Read moreBe Careful What You Contract For - Arbitration Edition
Courts interpret contracts as they are written, so be careful how you craft arbitration and other provisions to ensure your goals are achieved.
Read moreUsing an Assignment of Insurance Benefits to Obtain Payment
Where a project is being funded with insurance proceeds, an assignment of benefits can be a useful tool to ensure payment.
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