Press enter to begin your search
 
Construction Law Authority / Posts tagged "Contracts"

Multifamily Construction Defect Claims (Part 2)

In this 2 part blog post I wanted to touch on some basics of the typical “multifamily” construction defect case. Whether the project is a condominium, apartment, assisted living facility or hotel they share many of the same issues.  There are six primary considerations in bringing these claims but each of those has many subparts which depend on specific facts of the project.  Considerations 1 to 3 are here. The fourth consideration is the type of recovery available.  Generally the cost of repairing the defective condition is the damage that can be recovered.  In the event that such repair would be economically wasteful courts may consider diminution of value to be a valid damage.  In addition, depending on the type of property there may also be lost rents, lost profits claims for the time that the property was not able to be used for its intended purpose or for partial loss...

Multifamily Construction Defect Claims (Part 1)

In this 2 part blog post I wanted to touch on some basics of the typical “multifamily” construction defect case. Whether the project is a condominium, apartment, assisted living facility or hotel they share many of the same issues.  There are six primary considerations in bringing these claims but each of those has many subparts which depend on specific facts of the project. The first consideration is who is the true owner and is that entity able to recover for the defective construction.  Is there a condominium association or building owner? Maybe it is the hotel or facility operator that is the aggrieved party or is the developer of the building?  Knowing who has the rights to make the defect claims is a critical first step. The second consideration is to determine against whom any claims may be asserted.  Is there a claim against the developer of real property who designed, built...

Bid Alert: Review The Contract Terms

If you intend to provide a service to a public agency, be sure to consider the impact of long term contractual issues on the cost and profitibility when preparing the proposal. The agency’s contractual requirements are typically incorporated into the solitication. If they are not, you may have to inquire as to what they will include prior to submitting a proposal. It is imperative to know whether performance of the contract is doable and sustainable. For example, are there upfront costs that will be incurred?  What if the contract has a termination for convenience clause?  Will you lose your investment? Are there insurance and bonding requirements?  How much will these items cost? Is there a mechanism to seek price adjustments in the event your costs increase?  If so, what is the likelihood that the agency will actually approve cost increases over the lifetime of the contract? These are the types of questions...

When is a mandatory contractual venue clause in a construction contract not mandatory?

As a subcontractor, you enter into a contract with a general contractor to perform construction work on a project located in a certain county in Florida. The contract, however, has a carefully worded mandatory venue clause stating that the venue for any lawsuit brought for breach of the contract shall be in a different county in Florida. Unfortunately, things take a turn for the worse on the project. The general contractor does not pay you. Accordingly, you file a Claim of Lien. In turn, the general contractor transfers your lien to a bond pursuant to Florida Statute § 713.24; with the bond being posted in the clerk’s office of the county of the project’s location. Now you need to file suit. You elect to sue for both a breach of the contract and for an action on your lien that was transferred to a bond (also known as a lien transfer bond)....

Watch out for Construction Scams in 2013

As the construction industry hopefully improves in 2013, one must always be mindful of construction scams. These scams can take many forms, including but not limited to the following: The free test and need for a new system – An individual visited homeowners in Virginia and offered to test their water. Perhaps not surprisingly, the homeowners were then told they needed new water filtration systems. Yet, after paying for the systems the homeowners were unable to contact this individual. His so-called office address turned out to be a chiropractor’s office. Charges for construction fraud were brought against this individual in Virginia. Advance payments for work not done  - A general contractor in Texas continually got advance payments from its clients while doing minimal work in relation to the monies paid. In appealing criminal convictions determined in the trial court, the general contractor argued that it only quit the jobs after there were...

Bidding: What Does Responsive and Responsible Mean?

We have all heard the phrase "lowest responsive and responsible bid", but what does it mean? In the context of a public agency's award of a contract pursuant to an Invitation for Bids ("IFB"), the award will generally be made to the lowest responsive and responsible bidder. Pursuant to Florida Statutes, a “responsible vendor” means a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. Additionally, a “responsive bid” means a bid, or proposal, or reply submitted by a responsive and responsible vendor that conforms in all material respects to the solicitation. Accordingly, being the "lowest" bidder is not the end of the analysis. The low bidder must also demonstrate that it is qualified to do the work (i.e. responsible), and it must submit all required information and documents that are required...

Build the U.S. Wants to Help get America Back to Work

 Recent cooperative efforts to get the economy rolling through individual purchasing power include the Build the U. S. movement. Build the U. S. is a grassroots organization made up of manufacturers, contractors, architects, interior designers, and home buyers committed to buying and selling materials made in the USA for use in construction projects - public and private, commercial and residential. Born primarily from the desire to contribute in large ways and small to getting America back to work, Build the U.S. also brings American-made building materials back into vogue after the hard lessons learned by homeowners, homebuilders, product distributors, and manufacturers from the Chinese drywall debacle and other such consumer-products fiascos.This movement appeals to individuals who want to focus their consumer spending in a way that also helps others. Since consumer spending makes up seventy percent (70%) of our economy and since the purchase of American-made products promotes the...