Articles

In the construction industry, the unexpected tends to be expensive bad news. And with every surprise comes an obvious question, “Who’s going to pay?” Owner: “Look, it’s not my fault. You should have known about this. I’m not going to cover for your mistakes.” Contractor: “This is extra work – not part of the deal. […]

We can agree that consumer protection laws serve a useful purpose. But laws too complex invite evasion. California’s home improvement contracting law is a poster child for that proposition. Most contractors don’t comply simply because they can’t figure out what the law requires. California’s CSLB assesses fines (“civil penalties”) against contractors who don’t comply – […]

When you hear the term paper contractor, it’s usually in the context of someone being “only” or “just” a paper contractor. I believe this prejudice against general contractors working as consultants is breaking down. And for good reason. What was known as paper contracting in the last century has morphed into construction management (CM) contracting […]

If you haven’t been asked to sign a “green” construction contract yet, I expect it will happen in 2011. LEED (Leadership in Energy and Environmental Design) standards encourage conservation of resources through better design and construction of commercial and residential buildings. LEED is a voluntary program. But about a quarter of all construction now incorporates […]

On January 1, 2011, Arizona will join a growing list of states that offer an effective remedy against slow payment on private construction contracts and subcontracts. If you build in Arizona, or in any of the other states with a prompt payment statute, you should understand how to preserve and enforce payment rights. Of course, […]

Nine states place limits or impose restrictions on advance payments for some types of residential construction. If you have jobs in any of these nine states, you walk a fine line when asking for a down payment: Arizona, California, Indiana, Maine, Maryland, Massachusetts, Nevada (pools only) Pennsylvania and Tennessee. I agree that states have an […]

What’s wrong with A.I.A. contracts? Nothing, unless you’re a construction contractor. I’ll explain. The A.I.A. published their first “standard” construction contract in 1888. As a construction contractor, you’ve probably seen several A.I.A. contracts. Go to the A.I.A. site and you’ll discover that A.I.A. contracts are “accepted, reliable, fair and flexible.” Fine. But here’s what the […]

Has there ever been a construction project that didn’t require at least one change? A contractor can go an entire career without seeing a job like that. And for good reason. Construction is too permanent and too expensive to resist making a change when the need is obvious. Take this as carved in granite: Changes […]

Many home improvement contractors prefer to work under time and material (cost-plus) contracts. And for good reason. Surprises are common when remodeling or repairing an existing dwelling. With a cost-plus contract, a contractor doesn’t have to absorb the loss if there’s a surprise once work gets started. But there’s a problem. Six states require that […]

All states tip the playing field in favor of property owners who contract for residential work. Nearly every state requires very specific notices and disclosures in residential construction contracts. Even the slightest defect in an agreement can have consequences – fines, revocation of a license, charges for attorney fees, no right to collect or even […]