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Surprise! You Have A Breach Of Contract Claim

Which States Have the Most Challenging Lien Law?

The basic concept of contract law is that if a party breaches a contract, the other parties to the agreement have a claim against the breaching party. This is called having privity. Recently though, courts have started to allow non-party claims against breaching parties. This has come to be known as the third-party beneficiary doctrine. […]

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Proper Preparation Can Save You From Contract Disputes

We talk a lot on this blog about protecting yourself from unwanted legal situations by understanding your contract and knowing and understanding the laws that govern that contract and the project you are working on. These points are reiterated time and time again because they are vital to business in the construction world. I would […]

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City Sues Subconsultant Without Privity of Contract

Privity of contract is a simple concept. One must possess privity in order to sue another party for contract-related damages… usually. The basic concept of privity essentially means that if you are not a party to the contract, then you cannot receive rights and remedies afforded under that contract. The idea makes sense if you […]

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Contractor Held Liable Despite Following Instructions

Home Construction Is Growing - Send Your Notices

“They told me to do it.” “It’s not my fault.” Things we have all said at least once in our lives. Unfortunately, statements like this carry little-to-no weight in a court of law. As a contractor or construction party, you are held to a certain standard in the eyes of the law. This is especially […]

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Contract Contained Irrevocable Waiver To Claims

Every state is has different laws pertaining to waiving rights, claims, and lien waivers. For example, twelve states require that a statutory form must be followed in order for lien rights to be waived. Other states prohibit the unconditional waiving of lien rights. Contract law, for the most part, dictates lien waivers and other waivers. Contractors […]

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To Arbitrate Or Not To Arbitrate: Who Decides?

Confusing Lien Decisions

Arbitration is usually recommended as a less expensive and quicker way to resolve disputes. Ironically, arbitration can become a rather complicated matter in the construction world. These complications can arise from a multitude of issues, but one issue that recently resurfaced was the question of who decides whether it is correct or not to arbitrate: […]

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Design Professionals Beware: Can Be Held Liable For Defective Designs

Brace yourself. Legal jargon is coming. What is the economic loss doctrine? Simply put, the economic loss doctrine is a legal rule that bars tort claims (negligence claims) purely for economic loss. There must be some sort of personal injury or damage present in order for the claim to be valid. This doctrine has protected […]

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Can You File a Lien While Working Under Multiple Contracts?

Confusing Lien Decisions

In a recent Florida lawsuit, an engineering company and condominium association found themselves arguing over whether a mechanics lien was properly filed.  The two parties had executed 9 different, independent contracts to perform work on the condominium complex. When unpaid, instead of filing 9 different liens, the engineering company filed a single blanket lien against […]

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Mechanics Lien Rights Will Prevail in Most Bankruptcy Situations

Strategic risk management in the construction industry

John Kim of Sossaman, LLP recently wrote an article about the friction between mechanics lien filings and bankruptcy’s automatic stay rules, and right at the start of the article he states that, “[t]he rate of bankruptcies among construction industry participants is higher than some think.”  This may be quite an understatement. The risk of bankruptcy, […]

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CFM Review: What Makes A Lien Waiver Unfair

Fair Construction Payments

Every Friday, we will select a few in-depth articles from the week that we think are worth your valuable time as a construction financial manager (CFM). We look for compelling articles not only about financial topics, but about business, technology, and life, that challenges you to think about your role as a CFM in different […]

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