Articles

Nothing I’ve seen causes contractors more legal headaches than change orders. If you’ve dipped into the pages of this blog over the last ten years, you’ve seen how changes in the work can spoil nearly any job. A New York case decided last month illustrates the point. Here’s what happened. Lanmark Group, a New York […]

Let Sleeping Dogs Lie Fire damaged Terry Bridgwood’s home in Newburyport, MA a few years ago. Cost of repair was over $40,000. Apparently, the fire started in a ceiling light fixture. That’s strange. Light fixtures shouldn’t start fires. Her attorney agreed and did some checking.

Appraisals Appraisals come in at least three flavors. The first is based on comps. What would a comparable property sell for in the same area? The second is based on expected revenue. That’s the most common way to appraise commercial properties. The third type of appraisal is the replacement cost. In some ways, cost-based appraisals […]

Recovery from Hurricane Florence A week after Hurricane Florence passed through North and South Carolina, rivers are still above flood stage, schools are still closed and owners are still assessing the damage. The number of homes flooded will be in the low six figures – not as many as from Hurricane Harvey (over 200,000) or […]

How Does A Contractor Find More Work? A few years ago, I sat down with an architect friend, Bill Mitchell, to answer a simple question, “How does a contractor find more work?” Bill knows construction. He’s been designing and building residential, commercial and industrial projects for over 30 years. Here’s our list of what it […]

If you’ve never met a GMP contract, let me provide an introduction. GMP is a handy tool put to good use by many contractors. Back in July of 2010, I explained why home improvement contractors in six states (CA, IL, MA, NV, PA and TN) use GMP contracts. In those states, time & material contracts […]

Changes in Construction Contract Law — First Half of 2018 So far this year, eighteen states have changed how construction contractors have to do business. Some changes are trivial. Others will affect most contractors in the state. Here’s a state-by-state run-down on the most significant changes in Construction Contract law.

Limits on Warranty Claims. Is this your worst nightmare? You get a call out of the blue complaining about a job you finished many years ago. The caller complains your work was defective – required a lot of repairs, many thousands worth in fact. And the person complaining isn’t even someone you know. It’s someone […]

The Wrong Way to Close-Out a Project A few years ago, Eric Novelli, a Tennessee contractor, agreed to have Wagner Heating & Air install the HVAC system in a new 3-story home Novelli had under construction. There was no written contract.When work was done, Wagner called for final inspection by the City of Chattanooga. The […]

Earlier this month I got a question from a construction contractor negotiating a deal with the owner’s attorney. The attorney wanted a termination clause in the agreement. The contractor wanted the job but didn’t want to give his client the right to back out of the deal once work started. “Why even have a contract […]