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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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When to Use an Unconditional Lien Waiver

Unconditional Lien Waiver

Anyone furnishing labor or materials on a construction project may be entitled to file a lien if they are not paid. Parties at “the top” of the contracting chain – such as the property owner, lender, or general contractor – are highly motivated to successfully complete the project without having any mechanics liens or bond claims […]

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Miller Act Claims Are Not Easily Tossed Aside

Miller Act Claims Are Not Easily Tossed Aside

The Miller Act provides protection for contractors and suppliers on a federal construction project. The Act requires that the prime contractor on a federal project post a bond. This bond covers both first and second tier contractors and suppliers. Generally, if you are a third tier contractor or supplier, you have no rights under the […]

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Why You Shouldn’t Rely on Your General Contractor to Get You Paid

Why You Shouldn’t Rely on Your General Contractor to Get You Paid

Relationships are an essential part of any business. In fact, one of the main ways construction companies maintain and grow business is by forming positive relationships with customers that lead to future contracts or referrals. Sometimes, however, construction companies rely too much on relationships. If there is a customer that always pays on time and […]

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Double Damages For Bad Faith Discharge Claims

Most mechanics lien claims get paid before a foreclosure action is ever required

When a mechanics lien is filed and the lien claimant moves to enforce that lien in court, the owner or other parties of interest have the opportunity to discharge this lien by depositing a certain amount with the court. The amount that must be paid into court to discharge the lien is equal to the […]

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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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Fifth Circuit Upholds Payment Bond Rights

Payment bond rights under your state’s Little Miller Act statute are not easily avoided. Little Miller Act statutes allow subcontractors and lower-tiered parties to make claims against the payment bond that every general contractor must post for public projects. This process guarantees a certain level of protection for subs while ensuring a level of efficiency […]

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Signing a Lien Waiver? Here’s What to Keep in Mind

Signing a Lien Waiver

To sign or not to sign? Lien waivers are used all the time in the construction industry. Typically, the party making payment will request or require that the party receiving payment sign and execute a lien waiver as part of the exchange of payment. It is pretty clear why those making payment want the payee […]

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Start the New Year Right: Resolutions for Contractors

Resolutions for Contractors

It’s that time of year again… Time to reflect on the past 12 months and consider what we did well and where we can do better. It is easy to make a mental list of resolutions, but it’s not so easy to stick to them for a whole year. But we have come up with a solution to […]

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Why Subcontractors Fail and What to Do About It

Why subcontractors fail

Reprinted with permission from Construction Executive, a publication of Associated Builders and Contractors Services Corp. Copyright 2015. All rights reserved. This post was originally published on September 18, 2015. Subcontractor default is neither understated nor under-reported. Everyone in the industry is familiar with it and the consequences of the likely, yet always surprising, situation when […]

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