NACM Members Testify Against Proposed Mechanic’s Lien Changes in Texas

NACM Southwest members testified last week against proposed legislation that would change mechanic's lien notice requirements and deadlines in Texas during a recent Business and Industry Committee hearing of the Texas House of Representatives.Although HB2237, sponsored by Rep. Dustin Burrows and Rep. Joe Deshotel (D), aims to simplify and modernize...
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Proposed Texas Bill Would Change State’s Mechanic’s Lien Process

The Texas legislature is considering House Bill 2237, which would alter how material suppliers file mechanic's liens within the state. If the bill is approved, it would change notice requirements and deadlines.To provide a quick overview, here's a list of what this proposed legislation would do:Eliminates the subcontractors' and material suppliers'...
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3D Technology Could Overhaul Construction Industry

When you think of commercial construction materials, supplies of concrete, brick, steel and wood stored in warehouses and shipped on demand would likely come to mind. Today, you can add a mix of materials generated on demand and on-site from 3D printing."Three-dimensional (3D) printing is an additive manufacturing process that creates a physical ob...
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Housing Headed for Bubble?

Those of you who remember the housing crisis that precipitated the Great Recession may have been looking somewhat askance at the situation facing the residential housing market. It has been booming throughout what has been an extremely difficult year and that begs the question: Is this another bubble ready to burst?Will there suddenly be a collapse...
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Five-Year Fraud Scheme Raises Questions About Scam Protection

The sentencing of former MGT Construction executive, Patrick Lindsey, for a five-year fraud scheme has Chris Ring, of NACM's Secured Transaction Services, considering ways material suppliers or subcontractors could have protected themselves better in this situation.Over the five-year period, Lindsey served an integral role in the large-scale corpor...
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Construction Sector Hit by Rapid Input Prices

Soaring prices in construction materials are hurting the industry."After almost two years of decline, steel prices have risen sharply in recent months," Credendo analyst, Matthieu Depreter, wrote in a recent report on the sector. "If we look at the steel price index1, we see that the level of January 2021 is 40% higher than that of January 2020."De...
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Extreme Weather Has Texas Contractors Pressing Pause on Projects

It appears everything is bigger in Texas—even its temperature extremes. A recent barrage of winter weather has Texan contractors shutting down their construction sites across the state.The temporary shutdowns are not only the result of snow and ice accumulation, but the uncharacteristic drop in temperature and loss of power. Many contractors are ta...
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NIBS Convenes BIM Executive Roundtable on Construction Industry Digital Transformation

The National Institute of Building Sciences is working toward a U.S. building information modeling (BIM) standard. The organization met Feb. 4 with about 40 leaders from public and private organizations to discuss the need for a coordinated program to advance collaboration and innovation in the building industry.As defined on buildinginformationman...
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Will BIM Become the Standard in the USA?

Construction projects around the world have been, and are continually being revolutionized by the techniques of building information management, or BIM. The benefits of BIM in the realms of architecture, engineering and construction are multifaceted, from improvements in speed and efficiency to reducing materials wasted and increasing safety.These ...
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Delaware Bankruptcy Court Teaches Important Lesson on Timely Lien Perfection

Perfect your liens on time or you may lose them. That's the painful lesson U.S. Bankruptcy Judge Karen B. Owens taught Halliburton Energy Services, Inc., in her recent decision.Ruling on plaintiff-debtor Southland Royalty Company LLC's motion for partial summary judgment, Judge Owens found that Halliburton did not obtain a lien on Southland's produ...
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Wash Your Hands, Wear a Mask and Read Your Contract

In the midst of this pandemic, not to mention social upheaval, political chaos, and events of historic ramifications, everyone in the world right now is dealing with risk and uncertainty. Personal, family, professional, public, private, cultural, economic, it seems that if it is a noun, it is uncertain. We are coping, mitigating, avoiding, research...
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Construction Disruptions Settle After Initial Impacts

The ever-changing atmosphere of 2020 is nearing an end; however, only the calendar will be what is changing. As 2021 approaches, it is important to review the last several months as the economy plummeted and sharply rebounded to prepare for what the new year might bring. The construction industry, like many other sectors, saw its ups and downs with...
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Federal Prompt Pay Act Does Not Afford Subcontractors Right to Sue General Contractor

On October 15, 2020, in EMTA Insaat Taahhut ve Ticaret A.S. v. Cosmopolitan Incorporated, a federal district court held that the federal Prompt Pay Act (PPA) (31 U.S.C. §§ 3901, et al.) does not create a private right of action for a subcontractor against a general contractor. The dispute arose from a project for the installation of hardened traile...
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Termination of Construction Contracts

Rightful TerminationIf a construction contractor has been rightfully terminated, the contractor has no claim against the owner for damages. Under a properly drafted contract, the terminated contractor may be liable for the costs of completion after termination and other damages.[i]Wrongful TerminationBy terminating a contractor, the owner runs a co...
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Winter Slowdown-Pandemic Combo a New Hurdle for Construction

Winter is coming and that means the inevitable slowdown in construction is not far behind. Depending upon specialties, some construction companies fare better than others during the winter months, but slight declines in overall business are common during the industry's offseason. What remains uncharted territory for many in the sector is the combin...
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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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