A savvy contractor or subcontractor is generally familiar with the steps necessary to properly obtain and record a construction lien.

It has been more than ninety years since United States Supreme Court Justice Brandeis delivered his landmark opinion in United States v. Spearin, 248 U.S. 132 (1918). Yet today the Spearin doctrine remains at the forefront of construction law.

The Eleventh Circuit Court of Appeals, in a recent case which will have far reaching implications in the construction industry, soundly rejected workers’ demands for pay under the Fair Labor Standards Act.

It is not uncommon in the construction industry for parties to exchange and revise drafts of written contracts before agreeing on a final version.

Enter into a formal contract with any public authority for the construction or repair of a public building or structure or for performance of other public work and you will need to have a payment and performance bond in place, so say most state statutes.

In today’s post-boom construction environment, claims by project owners of construction defects, wrongful or otherwise, are all too common. Because the potential for damages and litigation expense associated with such claims can be substantial, a contractor would do well to have a working knowledge of his rights and responsibilities under a commercial general liability (“CGL”) insurance policy, especially the carrier’s “duty to defend”.

A party’s right to recover attorney’s fees incurred over the course of litigation hinges directly on whether one is deemed by the court to be the “prevailing party” at the conclusion of the case.

In a recent decision, Avatar Dev. Corp. v. DePani Construction Inc., 883 So.2d 344 (Fla. 4th DCA 2004), a Florida court held that a construction lien foreclosure claim was separate and distinct from the claim for loss of future profits.

A recent case should give pause to those who believe that legal disputes between parties will always be decided by the written terms of their agreement.

General contractors and subcontractors are familiar with the process of bidding for work; soliciting competitive bids from subcontractors and materialmen is a crucial ingredient in every bid.

How many claims of lien must a lienor record? A contractor, subcontractor, laborer, materialmen, or anyone else who may be a lienor, is required to record only one claim of lien for his entire demand against the real property for labor or services or material furnished.

Today’s distressed real estate market does not discriminate when it comes to claiming victims. A particularly onerous situation occurs when a condominium developer becomes insolvent and is unable to pay its bills.

In 1981, and again in 1992, an engineer and municipality entered into General Consulting Agreements. The 1992 Agreement called for the engineer to, among other things, provide “statements of probable cost” to the municipality for a road improvement project.

During the course of a construction project there is always the possibility that a contractor may “walk off” the job, leaving the owner, subcontractors and material suppliers with a difficult and often expensive dilemma.

This information is being presented from the Contractor’s vantage point. Hopefully, this will also provide valuable information for any design professional seeking to gain greater knowledge and information regarding the risk management concerns that apply to a Design/Build project led by a construction firm.

What happens when a borrower has earmarked portions of a construction loan for specific purposes but those designated funds are then subsequently disbursed by the lender for another purpose?

Recent legislative changes allow contractors to perform work even if they are not certified and registered, but only in those localities where the local licensing ordinances also do not require them to be certified and registered.

South Florida is experiencing unprecedented growth in residential, commercial, and public construction.

Copyright infringement is not limited to MP3 files or DVDs, it also applies to construction plans.

Finding yourself sued by an unhappy buyer of a property you helped build is no longer an unusual occurrence. In fact, such claims have become commonplace enough that Florida now has a law in place to address such issues.

The filing of a construction or mechanic’s lien is just one in a series of steps a contractor can take to protect its right to receive payment for labor and materials provided.

Assume a commercial dispute in which a plaintiff brings a count for breach of contract (with a request for compensatory damages) along with a fraud-related count (which seeks rescission of the subject contract).

One particularly onerous part of the litigation process is compliance with document production requests.

The preparation of a construction claim of lien appears to be such a routine task that many take for granted the importance of who is actually authorized by statute to do so.

A standard clause in many construction related contracts often requires one of the parties to indemnify and hold the other harmless.

A contractor, hired by a developer to perform certain earthwork, priced the job with the idea the he could remove excess fill from the job site and haul it to another project on which he was also working. An easy way to make some money, or so he thought.

In a recent Florida Supreme Court decision, the protection afforded to non-professional service providers against claims for solely economic damages has been erased.

What happens when a governmental entity burdens or restricts one’s property rights? Can a property owner receive any compensation for his or her diminished property value? Maybe.

What are a surety’s rights and obligations in disputing a subcontractor’s claim made under a payment bond?

The scenarios under which construction professionals and their companies may be threatened with violations of various statutory false claims acts are as broad as the industry itself.

When confronted with a possible fraudulent deed, there are several legal options available to help determine the status of such a deed and the true owner of the property.

You’ve been awarded a final judgment- what, if any, good does that piece of paper do for you?

Not receiving payment for your work is a principal concern on every job. Especially today, with everyone facing tough economic challenges, it has become a real concern to get paid when you are supposed to.

About a year ago, the United States Environmental Protection Agency’s (“EPA”) Lead-Based Paint Renovation, Repair and Painting Program (RRP) when into effect. The RRP is a Federal regulatory program affecting contractors and others that provide remodeling, repair, and related work, that “disturbs” painted surfaces in residential homes, apartments, and schools and day-care type facilities, among others, constructed prior to 1978.

Though well-intentioned as a means to resolve construction defect disputes prior to litigation, the application of Florida Statute Chapter 558’s procedures can be unwieldy in practice, with cases interpreting its provisions emanating from Florida’s courts in a piecemeal fashion.

It is obvious that the green building process is an idea whose time has come, but it is imperative that contractors and design professionals carefully review and analyze any such projects. Some of the important issues that must be considered when dealing with these projects include the lack of standard contracts, a broader scope and possible uninsured exposures.

Most business dealings have traditionally been supported by guaranty agreements; however, recent economic challenges are regularly testing the validity and enforceability of such promises. With defaults running rampant on all fronts, severely impacting global financial markets, it is clear that a better understanding of these instruments is in order.

Like any other statutorily driven area of the law, Florida’s lien law poses some serious risks to those who are unaware of its intricacies.

Most lienors do not know that a statute exists which, if properly exercised, could have their liens discharged and cancelled in a very short period of time.

The notion of shifting liability for personal injury or damage to property from one party to another has become common place, especially within construction contracts.

There is no running away from the fact that we live in a highly litigious society, and there is no question that having to file a lawsuit to enforce your rights or being brought into a lawsuit to defend yourself is at best an expensive proposition and at worst a gut wrenching experience.

It is customary for general contractors to include pay when paid clauses in their contracts, attempting to limit any requirement on their part to pay their subcontractors until they’ve received payment from the project’s owner.

Stay in business long enough and you will inevitably become a creditor in someone’s bankruptcy – a disappointing development made worse when you receive a demand from the Trustee’s counsel asking for the return of a payment you recently received from the bankrupt debtor.

There are an estimated 35,000 homes in Florida that were built with Chinese drywall from 2004 to 2008, some 30% of the installations nationally.

A contractor agreed to build a two story garage, but early in the project realized he had made a mistake. He had constructed the foundation footer shorter than the length needed. He advised the owners and proposed a resolution.

As the construction industry continues to play a major role in Florida’s economy, there are a variety of entities involved in this industry who need to be concerned about liability issues in the event that a particular construction project does not proceed or is otherwise not completed according to plan.

A lienor can waive or release its construction lien anytime it wishes to settle its claim.

A high-rise condominium community attractively situated on Biscayne Bay was shut down and evacuated by emergency order of the City of Miami as a result of substantial failures in and to the structural steel members of the building.

More than midway into a project, two architects were terminated by a college for unsatisfactory performance. The college also alleged that since the architectural partnership had never obtained the requisite certificate of authorization, there was actually no valid contract in place.

Many of today’s mergers and acquisitions have hidden risks, which, if unaddressed, could prove financially fatal years after a deal is completed.

The World Health Organization estimates one in every six commercial buildings in the U.S. suffers from “sick building syndrome.” 20,000 new cases of bacterial pneumonia per year are spread through HVAC systems.

The Florida Legislature continues to enact laws geared to protect consumers in a construction setting.

One method of resolving legal disputes short of a full trial is nonbinding arbitration. Authorized under several Florida statutes, nonbinding arbitration can be said to resemble a minefield.

Given the vagaries and uncertainties these days in loan commitments as well as material prices, not to mention the overall state of the construction industry, one can quickly understand why pay-when-paid provisions have become so critical in construction contract negotiations.

You think you have an understanding. So you prepare and sign an agreement with all the key points, and send it to the other side for signature. You even add a provision, asking that the document be signed and returned by a particular date. What if it isn’t; do you still have a deal?

Florida courts have consistently held that a settlement agreement resulting from a mediation will not be enforced without the signatures of both the attorney and the client. The fact that an attorney may have signed on behalf of his client or in the presence of his client is not sufficient to overcome the legal requirement that such an agreement also have the client’s signature.

Increasing use of restrictive covenants protect firm’s intangible assets but can limit employees’ future career opportunities.

Noncompete agreements operate to restrict an employee from competing against his or her employer in the event that the employee leaves the company.

Too often in the law, great advancements are encountered by greater obstacles.

The preparation of a construction claim of lien appears to be such a routine task that many take for granted the importance of who is actually authorized by statute to do so.

All contractors actively engaged in construction work are undoubtedly familiar with Notices to Owner – that section in most mechanics’ lien statutes which outlines what a materialman, laborer, subcontractor or sub-subcontractor, who is not in privity with the owner, must do to perfect his lien rights in order to record a claim of lien.

Florida’s Third District Court of Appeal has recently reversed a significant jury award in favor of a municipality and against a consulting engineer, remanding the case for a new trial.

The Florida Legislature recently passed a new law that allows state agencies, as of October 1, 2004, to purchase owner-controlled insurance in connection with a public construction project, if necessary and in the best interest of the public agency.

The American Institute of Architects produces contract and bond forms regularly utilized by the construction industry.

At the heart of the reason to set up a corporation or limited liability company (“LLC”) is most often the ability to limit liability. When organizational boundaries are properly respected, the individual shareholders of a corporation, or the members in the case of a limited liability company, are generally shielded from liability for company debts or claims.

The reward a subcontractor obtains after successfully completing its work is a final payday.

The prevailing party for the purpose of a contractual attorney’s fee provision is the party that prevails on the significant issues in the litigation.

A recent case addressed a little known Florida statute. Fence Masters Inc. v. Zurqui Construction Services Inc. stemmed from a subcontractor’s request for payment on work done to improve public property under a contract with a general contractor.

Florida Statute §255.071 is a little known but potent tool for subcontractors and materialmen.

In essence, there are two possible types of theories of liability in construction litigation – those arising in tort, and those arising in contract. In tort cases, the primary theory of liability would be in negligence. Contract related disputes are more commonplace at the courthouse.

Under Fla. Stat. §713.07(2), liens under §713.05 (persons in privity) and §713.06 (persons not in privity) attach and take priority as of the time that the notice of commencement is recorded.

The perils of hiring an unlicensed contractor are significant. They extend to other contractors and their subs, as well as members of the general public. But by far, the party facing the greatest exposure is the owner. The risks are numerous, and can sometimes manifest themselves in a surprising way.

A promise to sell real property can be just so many words if it isn’t reduced to writing.

Design professionals, including architects and engineers, can be held liable for issues that are not addressed during a review of shop drawings and which later develop into problems on a construction project.

When public monies are involved, the potential exists for any contractor to find itself on the wrong end of a false claim proceeding.

Because of the length of time it takes to complete a project, the number of parties involved, and the general unpredictable nature of construction work, it is rare that a contract for such work remains unchanged from start to finish.

In South Florida’s current real estate market, problems surrounding the vast amount of new construction, particularly high-rise condominiums, seem to garner a substantial number of headlines.

As a general rule, the limitation period in most jurisdictions for filing a materialman’s lien on a property, assuming all other conditions have been met, begins to run when the materials are delivered to the property.

The most common refrain I hear when talking to clients about Contract Review and Administration is: “I only sign a standard contract.”

A contractor can not be compelled to arbitrate a dispute with his supplier if the only place arbitration is mentioned is within the terms and conditions of the supplier’s website. While it is often standard practice for suppliers to have their terms of sale printed on their invoices, one Florida supplier simply relied on the fact that this information was on its website. Bad idea.

A key factor for a contractor to consider in pricing its goods and services at an amount that is both palatable to the purchaser and profitable for the contractor is an astute evaluation of the underlying costs and any expected increases.

Many building projects require rezoning of the property on which they are to be built so as to comply with applicable laws.

Because purchasing a home is typically the largest purchase a person makes in their lifetime, it quickly becomes a roller-coaster ride of excitement and emotions, encompassing hours of research, projections, and financial analysis.

Many contracts are impenetrable with their fine print, multiple pages and complicated language. What is a subcontractor to do? At the very least, smaller construction firms should focus on those areas where a mistake could be costly and exposure is likely.

The variety and types of claimants scheduled on a debtor’s schedules and who file claims can be quite varied.

Shifting the risk of an owner’s possible nonpayment from one party to another is neither simple nor guaranteed.

Firms which decide to participate in the “Design/Build” Construction Delivery System agree to both construct and design the project.

If you are the owner of a property that is the site of a construction project, one way to limit your exposure to the individuals and companies working on the project is to make “proper” payments during the course of construction.

If a homeowner has a problem with either the design, planning or construction of an improvement to his real property, he must initiate legal action within four years of the date of actual occupancy by the owner, the date of issuance of a certificate of occupancy, the date of abandonment of construction if not completed

If a homeowner has a problem with either the design, planning or construction of an improvement to his real property, he must initiate legal action within four years of the date of actual occupancy by the owner, the date of issuance of a certificate of occupancy, the date of abandonment of construction if not completed

You would think that words such as “leak” and “repair” are easily understood but that wasn’t the case for one particular roofer. He agreed to perform roof maintenance and repairs for a community in return for set monthly payments.

Construction contracts and construction-related statutes generally provide the prevailing party with recovery of its incurred attorneys’ fees.

This topic has always created a dilemma for contractors, design professionals and their insurance agents.

A drive-thru restaurant spent $10 million dollars on its ad campaign. However, it apparently failed to check a very important detail — if it could use the slogan it had developed.

Far too often, feelings of elation and the excitement of purchasing a new condominium can sour when the buyer becomes aware of one or more construction defects. A dream unit can become a nightmare once flaws, both patent and latent, are encountered after the developer has turned over the project and left the site. Who is accountable for the necessary repairs?

Is your firm providing services to a condominium, be it to the common elements or to individual units? If so, you need to know that the law in most states requires such contracts be in writing.

Nothing is more frustrating to a creditor than being told that despite holding all the right documents on a defaulted obligation, it cant immediately take back the personal property which collateralizes or otherwise forms the basis of a prior transaction.

While most everyone is aware that states have statutes which govern construction or mechanic’s liens, many do not realize the significance of the law of contracts on contractor claims.

Good contracting practices, The contract documents, work defined, …

Subcontract price, payment, time, extensions of time, …

Change Orders, Notices and Claims, Bonds and Insurance, Indemnification…

It is no surprise that your Subcontractors will retain the services of other specialized trade professionals and suppliers in the performance of their duties.

The devil is in the details. This is particularly true in construction.