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Don’t Forget to Send a Notice to Owner in Minnesota

 A delayed downtown Minneapolis construction project has seen its share of complications. As with many companies, construction projects and other business ventures, the COVID-19 pandemic has thrust its ugly head into the world, impacting billions of people. The Dayton's Project in downtown Minneapolis has a delayed opening due to COVID-19, and...
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Commercial Construction Struggles Reach Las Vegas

Many industries have languished in recent months due to the hardships of COVID-19, and the construction sector is no exception. Analyses have shown the impacts are ongoing, including a recent survey from the Associated General Contractors of America (AGC) that found 78% of respondents reporting project delays and disruptions in October. A new wave ...
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Litigation Privilege Saves the Day for Mechanic's Liens

In RGC Gaslamp v. Ehmcke Sheet Metal Co., the Fourth Appellate District held that a trial court properly granted an anti-SLAPP motion because the recording of a mechanic's lien is protected by the litigation privilege.In RGC Gaslamp, subcontractor Ehmcke Sheet Metal Company ("Ehmcke") recorded a mechanic's lien to recoup payment due for sheet metal...
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Nonpayment Protections for Material Suppliers Start with Data

Defensive driving is a tactic that protects motorists. It saves lives and reduces the possibility of accidents. Mastering the skill puts you in the driver's seat, so to speak, to avoid obstacles and stay in control. Acquiring this prowess and self-awareness in other areas of life can be just as important, and it can provide similar protections. In ...
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Construction Industry Plans for Ongoing Pandemic-Driven Changes to Operations

With 2021 on the horizon, the construction industry is moving forward with the pandemic in mind and, unfortunately, the same obstacles remain. A lack of in-person meetings is impeding some companies' ability to conduct business, and there are rising concerns over the coming year's cash flow. Yet, the show must go on, so construction professionals a...
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140 Hits
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Eight Issues to Review when Negotiating Construction Contracts in the COVID-19 World

Over recent months, we have all been inundated with webinars, articles and non-stop updates on COVID-19 and how this unprecedented crisis is impacting the construction industry. The term "Force Majeure" has become a common refrain in the COVID-19 era. The issue is that many construction contracts may not even use this term and even more do not use ...
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188 Hits
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Tennessee Enacts New Construction Legislation in 2020

The Tennessee Construction Industry Payment Protection Act was signed into law on June 22. The Act addresses or reallocates certain risks associated with non-payment on construction projects under Tennessee's Prompt Pay Act (PPA) and is intended to increase clarity and consistency in the PPA and in Tennessee's mechanics' lien law, Truth in Construc...
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195 Hits
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New Georgia Law Changes Lien Waivers

Georgia Senate Bill 315 ["SB 315"] amends the lien waiver statute codified under OCGA §44-14-366. It has passed both houses and has been signed into law by the governor with an effective date of Jan. 1, 2021. The reason the law was amended was a recent decision by the Georgia Court of Appeals that held a lien waiver was not limited to lien/bond cla...
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The Risky Business of Material Suppliers

If there's one piece of advice credit professionals in commercial construction should follow, it's knowing who you're getting into business with from the start. Material suppliers must not only assess any and all potential risks of conducting business with a subcontractor (sub) but also understand the consequences of little to no due diligence. For...
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What If the Contractor, Rather Than the Owner, Signs a Notice of Commencement? Is the Notice Defective And, Therefore, Ineffective?

Under Florida lien law, a Notice of Commencement is a form document the property owner is generally required to sign and record in the public record before commencing any improvements to real property. One of the purposes of the Notice is to provide potential lienors with information they will need to file a lien if they are not timely paid. The st...
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248 Hits
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Fraudulently Filing Lien Backfires on Contractor

Liens represent one of the primary mechanisms by which contractors, subcontractors, and other downstream parties secure payment rights under a construction contract. When utilized properly, filing a lien may induce an owner to release funds that are undisputedly owed to the lienor. However, when a party's lien filing is delinquent or defective, and...
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227 Hits
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Two Paths for Security in California

Organization is key for credit departments whether there's a pandemic or not. Having a system in place can help with issues down the line especially when paperwork is now scattered at the office and at the home office—two locations for problems. Trying to find that one piece of paper with the name of the surety company at the last minute to keep bo...
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281 Hits
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Seventh Circuit Court of Appeals Holds Literal Interpretation of 'Within 90 Days' Under the Miller Act

An appeals decision by the Seventh Circuit underscores the importance of strict adherence to the requirements of the Miller Act. A&C Construction & Installation, Co. WLL v. Zurich American Insurance Company and The Insurance Company of the State of Pennsylvania, No. 19-3325, decided June 30, 2020, concerns a Miller Act claim on a payment bo...
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218 Hits
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Remembering the Notice of Non-Responsibility

 For so long, a hot economy and commercial leasing market meant that concerns over unpaid tenant improvement construction and related mechanic's liens were closeted like winter clothes in the heat of the summer. In the current "pandemiconomy," many commercial businesses are planning their return to the office. Some tenants need to complete bui...
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Joint Check Agreements: No Two Are Alike

Nothing is ever carved in stone, so business credit professionals should always sleep with one eye open when expecting payments on construction projects. Finding a way to become more secure is always in the best interest for creditors, even if it only slightly improves the odds of being paid and being paid on time. Each security mechanism works a l...
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248 Hits
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Material Suppliers Best Prepare for Additional Costs During Construction Projects

If the first half of 2020 has proven anything, it is that the pandemic will leave a lasting impact on how society goes about day-to-day living. Many are working from home, stores are cleaning checkout counters after every customer, and masks are a common wardrobe choice. Several companies are adapting their operations within their existing structur...
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224 Hits
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Notice Your Lien or Kiss it Goodbye in Minnesota

Like many states, Minnesota requires subcontractors and suppliers to send pre-lien notices to owners to perfect mechanic's lien rights. Failure to comply with the pre-lien notice statute can prove fatal to a lien enforcement action as one masonry supplier recently learned. In Timberwall Land & Masonry Products, Inc., the Minnesota Court of Appe...
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301 Hits
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Construction Impacted by Coronavirus? Know Your Lien Rights in Colorado

The current coronavirus crisis has created unprecedented challenges for those in the construction industry. As a result, contractors, subcontractors, and suppliers must be vigilant to protect their ability to receive payment on projects where cash flow might become problematic. One such way to ensure payment is by availing oneself of the various st...
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385 Hits
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New Home Sales Exceed Projections in May

New single-family home sales in the U.S. are on the rise. According to the Census Bureau and Department of Housing and Urban Development, sales increased 16.6% in May to a seasonally adjusted annual rate of 676,000. This is better than expected as MarketWatch reported analysts predicted a rate of 650,000, and Reuters' economists forecasted sales wo...
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Joint Check Agreement Causes Big Trouble in Virginia

Many general contractors manage the risk of a subcontractor's financial instability by issuing joint checks to the subcontractor and its suppliers on a project. These arrangements are usually governed by a separate agreement that sets forth the roles and rights of the parties, and limits the general contractor's liability to sub-subcontractors and ...
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390 Hits
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