Subcontractor default is neither understated nor under-reported. Everyone in the industry is familiar with it and the consequences of the likely, yet always surprising, situation when a subcontractor defaults on a project. Continue »
Scott Wolfe Jr.
It’s hard to understate how prevalently misunderstood the concepts of mechanics liens, bond claims and financial risk are in the construction industry. Yet, these issues permeate every industry relationship. Those who try to evade dealing with these issues tend to get scorned, while companies that confront these issues head-on tend to succeed. Continue »
Companies may sometimes file a mechanics lien claim if they are unpaid for furnishing labor or materials to a construction project. Though the remedy is strong and effective, it is not always available. Continue »
Furnishing materials or labor in the construction industry mandates that companies interact with a variety of complicated legal documents. The core construction contract, for example, is notoriously long and convoluted, but at least it has been quasi-standardized by the AIA, ConsensusDOCs and similar efforts. Continue »
Subcontractor default is a problem that is neither understated nor under-reported. Everyone in the industry is familiar with it and the consequences of the likely, yet always surprising, situation when a subcontractor goes into default on a project. Continue »
Executives in the construction industry and construction financial managers constantly manage and analyze their company’s working capital. At year end, the company must have its balance sheet right and financials reported accurately according to Generally Accepted Accounting Principles (GAAP). Continue »
Payment bonds are always associated with contractual terms, but sometimes they also are simultaneously regulated by statute. Continue »
On public projects, payment rights are protected by bonds, rather than by liens against a property. Continue »
A construction contract without an alternative dispute resolution (ADR) clause are scarce these days. When payment gets held up on a project, therefore, the parties in a dispute frequently circle back to one of these ADR provisions and start to contemplate their options.
Unfortunately, fraud and construction have gone hand in hand since the beginning of the industry. Continue »
The good news about the construction economy in 2014 is that it’s expected to grow. The result of the growing economy will be new opportunities, and these new opportunities may encourage businesses to get larger. Continue »