The 9th Circuit Court’s review of how construction contractors should recognize income had a somewhat surprising outcome. The key question being considered was: When should developers recognize income under the completed contract method? Is it when the entire project is complete, is it on percentage of completion, or is it upon the sale of each individual home sold?
The explosion of e-discovery in litigation and arbitration unpleasantly introduced many companies to the concept of spoliation of evidence and the need to preserve documents once litigation is pending or even reasonably anticipated. At first, the “adverse inference instruction” penalty (i.e., a judge informs the jury that someone concealed evidence or information, or spoiled evidence so it could not be brought to court) did not seem too severe. The greater concern was for dismissal of claims or defenses, a sanction thought to be so severe that no judge would order it except in the most egregious of circumstances.
Financial Statement Red Flags to Detect Internal Theft Construction Contractors Can Minimize Financial Damage by Recognizing Fraud
Businesses worldwide lose five percent of revenue each year due to occupational fraud committed by their very own employees, according to the Association of Certified Fraud Examiners’ Global Fraud Study for 2016. In 94.5 percent of fraud cases, perpetrators took some effort to hide the fraud by creating or altering physical documents.
There are ways to resolve problems that arise during a construction project—such as disagreeing about items on a punch list or even one party running out of money—without litigation. Following are ways to ensure a construction project runs as smoothly as possible.
The University of North Carolina Highway Safety Research Center study found an estimated 284,000 distracted drivers are involved in serious vehicle accidents every year, with cell phone use being one of the major contributing factors.
On Feb. 25, 2015, the U.S. Department of Labor (DOL) adopted new regulations that define the term “spouse” for purposes of the Family and Medical Leave Act of 1993 (FMLA). Under the regulations, which take effect March 27, the term “spouse” includes all individuals in same-sex and opposite-sex marriages, without regard to whether the states in which those individuals reside and work recognize same-sex marriage.
I n some ways, a lawsuit—whether by the contractor or against it—is a bit like a serious personal injury. When it happens, it derails important plans and goals. Continue »
The discrepancy between state and federal views on the use of medical or recreational marijuana has presented a significant challenge for employers, especially those that have operations in multiple states. While the possession, distribution or manufacture of marijuana remains illegal under federal law, reversal of state prohibitions began with California’s Compassionate Use Act of 1996.
Imagine a real estate deal involving a myriad of moving pieces: the acquisition of a historic property, development plans to create a mixed-use building, financing from a senior lender and mezzanine lender, tax issues, borrower/developer corporate structuring needs and environmental concerns.
Though it’s common for contract provisions to require arbitration, owners, general contractors and subcontractors frequently disagree over the merits of this method of dispute resolution. Following are the top 10 pros and cons of mandatory arbitration.
Although attorneys have an ethical obligation to keep information relating to a client’s representation confidential, many contractors fail to understand how attorney-client privilege works and wrongly believe they can tell their attorneys anything without the risk of disclosure. This can lead to costly mistakes that could jeopardize valid claims and disputes on construction projects.
When looking to grow a business, it’s important to consider the advantages and disadvantages of the firm’s existing legal structure. Continue »