Columnists: Mcgreevy
Is there a risk in Builder's Risk Insurance?
The construction insurance industry has developed the concept of a "Builder's Risk" policy, which covers all the work in process, regardless of who happens to own it at the time of the occurrence. ...
Avoiding the competitive bid process
I don't make a practice of writing columns about isolated court decisions, particularly those that turn on fine points of state law, but the editors of CONTRACTOR magazine have brought to my attention a recent opinion that would warm the heart of any contractor patient enough to wade through its 18 pages, plus six more pages of footnotes....
Damages for delay: what is fair?
Few people pay for construction work unless they intend to put the end product to use, either as their own residences or for a business or public purpose. In any case, there are repercussions — with dollars attached — if the end users can't get access when they planned. Yet more often than not, the subject of damages for delayed completion isn't adequately discussed (if it is discussed at all) at the time the customer and contractor are entering their agreement. ...
Not all bonds are created equal
The only work in many communities these days seems to be public work. Well, at least you have the consolation that you will be paid because, aside from everything else, the contractor will have to have a payment bond to protect you, right? Bonds prove that there will be a big, solid company standing behind the obligations of contractors. Don't they?...
What strings come with stimulus projects?
I haven't talked to many contractors who are seeing a big resurgence in private development yet, but I do know some who have survived because of an American Recovery and Rehabilitation Act (Stimulus) funded project. Small towns that needed but couldn't afford a sewer upgrade or road extension took advantage of federal funds to quickly get a project going. But along with the Stimulus funds are Stimulus rules, and more of them than you might expect. So, you have to decide: is it worth it?...
Employee or independent contractor?
The Internal Revenue Service is being given funds for an additional 100 new "enforcement personnel" in the 2011 budget as part of a $25 million plan to crack down on the misclassification of workers as independent contractors...
Federal project funds: understanding the laws, requirements
Doing business with the federal government is different. While it can be lucrative, it requires a working knowledge of a procurement system which is a world unto itself — as far away as you can get from the world of "in the old days we just worked on a handshake." Aside from the paperwork, inspections, delegation-of-authority issues, etc., every contractor working on federal work is presumed to know all of the laws and regulations that it must comply with....
Leveling the playing field between owners and contractors
I met with a client this week who was encountering difficult soil conditions while laying sanitary sewer pipe. What he encountered was very different than what was shown on the soil borings, which had been made part of the contract documents. In fact, he encountered a landfill that he believes is full of old tires, paint cans and contaminated water in all the voids. It will be expensive to move and may involve toxic substances. ...
They don't always get away with it
We have all heard stories of firms owned and operated by non-minority men, who appear to find a way to obtain contracts that are set-aside for women or minorities. I receive about one or two inquiries a month (more since the Stimulus Act) as to how this can be done. ...
How to improve the collection process
Most plumbing and HVAC contractors are not bankers, and do not want to be in the financing business. Yet more than ever before, I see them turned into bankers — cash-flowing projects to keep owners, developers and general contractors afloat. This is happening everywhere, on the smallest remodels to the largest new construction projects. If you don't want it to happen to you, then you will need to take some pro-active steps to protect yourself....
BIM: What to watch out for
Last month I discussed in general what Building Information Modeling is and isn't. The term properly applies to the accumulation of all data relevant to the design, construction and operation of a physical plant or facility, so that parties can work out discrepancies and conflicts in a virtual environment (rather than in the field, when work is stopped), and then later use it as a "living history" for maintenance, renovation and other purposes. ...
BIM and you: know its benefits and risks
Building Information Modeling (BIM) is coming, and as Lee Iaccoca (and many others, probably) put it, you'd better be prepared to lead, follow or get...
Are prepaid legal services worthwhile?
Although it may not take as much to keep a good employee as it did when jobs were more abundant, employers are generally always on the lookout for benefits...
What's good faith got to do with contracts?
The world of construction is governed by rules. Lots of rules. Rules imposed by law through statutes, ordinances, codes and rules imposed by parties through contracts. Through these rules, we set up the parameters for what we can expect in the course of our dealings, and we all operate under them every day, but they are all susceptible to misuse by people bent on taking advantage ...
Are EO programs right for your business?
Many public agencies federal, state and local have programs to assist various target groups to gain greater participation in construction contracting....
The latest on E-Verify
If you are not in the loop on the current status of E-Verify, don't feel alone. This 13-year-old concept is still being born. ...
Avoid disputes with a discussion, contract
Although the recent economic downturn has left people scrambling for ways to increase sales and profit while avoiding risk, the construction industry...
Can HOAs stop you from going green?
As a nation, we are all becoming more conscious of the need to be energy efficient and energy independent. The Obama administration says that it is making...
What you need to know about public work
By now it is clear that nearly every segment of the construction economy has been adversely affected by the recession. As private work, starting with...
T for C clauses set no limits on termination
Back in the olden days of construction, once a contract was entered, the contractor had the right to complete it and be paid the full price. Over time, the concept of a “Termination for Convenience” (T for C) clause arose....
When a business partner goes bankrupt
No one likes to think that the people they buy from or sell to might not be around tomorrow. But the situation can be even worse if the person or firm files for bankruptcy because then the rights of others who do business with the debtor are controlled by federal bankruptcy law, which often produces results that you would not expect and that you don't like. And I cannot think of an industry that is more severely impacted by court-imposed delays than construction. ...
ADA Amendments Act of 2008 expands employee coverage
The Americans with Disabilities Amendments Act of 2008 has added new protections for workers effective Jan. 1, 2009. The new act modified the definitions of “disabilities” and “impairments,” and states in no uncertain terms that the terms “substantially limits” and “significantly restricts” are to be applied more loosely to allow more people to qualify for protection....
What to do when they run out of money
I have been working with construction companies for many years, and never before have I encountered so many situations in which so many contractors were...
How to improve the change order process
Steps that contractors can take to improve collections on change orders...
Change order myths demystified
I have often thought that without changes and change orders, I would never had developed a law practice concentrating on construction. The general belief...
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