Avoiding Common Problems

 

~The Legal Landscape of a construction agreement~

 


The legal landscape faced by the construction industry has become more challenging over the past few years. Increases in liability suits against contractors, coupled with the reinsurance market that is still absorbing losses from 9/11, have caused several insurers to stop writing policies for contractors. As a result, many contractors, at the urging of their insurance companies and brokers, are reexamining their legal and business practices. Here are five common problems in construction projects and suggestions for how owners and contractors can avoid them.
1. Failure to use good written contracts between the owner, contractor, and subcontractors. Although not legally required, contractors and owners usually enter into a written contract, even for small projects. Contractors, however, often will hire subcontractors and material suppliers with only a phone call. All of the basic reasons that the contractor enters into a written contract with the owner also apply to the relationship between the contractor and its subcontractors and major material suppliers. A good construction contract specifies price, scope of work, and start and completion dates. It is important that the various contracts are consistent and work together. A good construction contract includes provisions for dealing with changes to the project and a mechanism to settle disputes, such as arbitration. For a change to the project to be made smoothly, the process for the owner to make a change to the project set forth in the contract between the owner and contractor must be consistent with the change order process set forth in the contract between the contractor and its subcontractors. Inconsistencies between the various contracts can lead to unintended results. For example, if the contract between the owner and the contractor requires that disputes be settled by binding arbitration, but there is no corresponding arbitration clause in the contract between the contractor and its subcontractors, the subcontractors cannot be forced to participate in the arbitration.
2. Failure to document changes to the project. Any change to the project should be documented by a “change order” that is signed by all affected parties. Even if the complete nature of the change is not yet known, the facts that are known should be promptly documented. A “construction change directive” should be issued and signed to confirm that the change has been requested and made, even if the price of the change has not yet been determined.
3. Failure to document and meet expectations. Even where the parties have entered into a written contract, expectations are often created during the initial sales process and negotiations. While a good contract will disclaim any representations that are not expressly included in the final written contract, it is still important that all parties verify that the final written contract includes all of the agreements between the parties. If the contractor promised certain start and completion dates, those dates should be included in the contract. If the owner has requested specific finishes, those should also be included in the contract.
4. Failure to understand and comply with the mechanics’ lien process. Anyone who provides labor or materials for a private construction project, whether commercial or residential, has a right to file a mechanics’ lien if they do not receive full payment. The requirements for obtaining the lien are strictly construed; an unpaid contractor or subcontractor needs to make sure that it provides the appropriate notices to maintain its lien, either in its contract or by separate written notices. Mechanics’ liens are a powerful collection tool because they provide a lien against the real estate just like a mortgage, even though, unlike a mortgage, the owner does not need to sign anything or even consent to the filing of the lien.
5. Failure to follow the building code. All new construction is required to meet the building code – if it does not, it will not be passed by the building inspector and no certificate of occupancy will be issued. Texas’s statutory warranties that apply to all new residential construction and remodeling are also based upon the building code; a violation of the building code therefore also constitutes a breach of the statutory warranties.

 

OUR CONSTRUCTION SERVICES                                                 TRCC#39176
Architectural and Engineering Design Services
:: Programming · Master Plans and Site Analysis
:: Architectural Design · Structural, Mechanical, Electrical, Civil Engineering
:: Landscape Design · Space Planning
:: Test Fits · Interior Design & Selection of Furnishings
:: Custom Millwork Design · Cost Estimates
:: Project Management · Historic Preservation

Our Design & Build Services
:: Residential Services; multifamily dwellings, custom homes, custom additions and renovations
:: Commercial Services; retail stores, office interiors, show room and          restaurants

 

Our Construction Management
:: Building Permit Process · Bidding · Cost Estimates
:: Value Engineering · Negotiation and Contracting
:: Procurement of Materials · Construction Observation
:: Inspection and Testing · Management of Trade Contractors
:: Progress Payment Process · Punch List
:: Close Out and Release of Claims

custom home builder, remodeler austin tx, commercial builder, office builder, new home builder, green builder, construction contractor, austin tx cedar park, Lakeway, Round Rock, reliable construction companyWE BUILD EFFICIENTLY ! 

   in the beginning there was..

DRAFTING-ARCHITECTURAL-DESIGN-SERVICES-AUSTIN-TX-DRAFTING-MODERN-ARCHITECTURE, Commercial drafting, additions and residential home design..design & drafting !

Construction information links

8 REASONS WE'RE BETTER! READ

CUSTOM HOME BUILDER PORTFOLIO COMMERCIAL CONSTRUCTION
■  The Building Process Steel Frame Building  ■
■  Financing Construction Avoiding Common Problems  ■
■  FREE construction consultation Development Services   ■
■  Remodeling & Additions Commercial developer 101  ■
■  General Contractor Foundations & Concrete Work  ■
■  New home Builder Solar Panels  ■
■  Our Structure's basics Carpenter / Carpentry  ■
■  Cabinets Kitchens  ■
■  STUCCO / BRICKS / ROCK WALLS Bathrooms  ■
■  Decks & Decking RENOVATIONS  ■
■  Swimming Pool Contractor Affordable and Reliable Roofing  ■
CUSTOM HOMES COMMERCIAL CONSTRUCTION
■  The Building Process Steel Frame Building  ■
■  Financing Construction Avoiding Common Problems  ■
■  FREE construction consultation Development Services   ■
■  Remodeling & Additions Commercial developer 101  ■
■  Our Structure's basics Safety & Employment  ■

 

 

~Find a lot to build on~

© 2008 512 DEVELOPING, LLC. ® ALL RIGHTS RESERVED.

find a contractor austin tx construction company austin tx 512 developing construction services find a builder commercial construction central tx custom builder austin tx remodeler building company construction services build my plans build an addition construction company modern designs architects develop my land central texas  construction company austin tx 512 developing construction services find a builder commercial construction central tx custom builder austin tx remodeler building company construction services build my plans build an addition construction company modern designs architects develop my land central texas

Roofing co austin tx roofers storm damage relief central tx composite shingle roofs, tile roofs, metal roof, cedar park, leander, austin, lakeway, round rock, all central tx roofs installed by 512deVeloping roofers

OR ROOFING

 

Renovations

 

Solar Panels, solar panel, solar paneling, solar homes, commercial solar panels, city of austin solar panel installer, city of austin rebates for solar panels, solar paneling, energy efficient solar panels, solar panel contractor, solar paneling my house, solar panel installer, solar panel systems, Solar Panels, solar panel, solar paneling, solar homes, commercial solar panels, city of austin solar panel installer, city of austin rebates for solar panels, solar paneling, energy efficient solar panels, solar panel contractor, solar paneling my house, solar panel installer, solar panel systems Solar Panels, solar panel, solar paneling, solar homes, commercial solar panels, city of austin solar panel installer, city of austin rebates for solar panels, solar paneling, energy efficient solar panels, solar panel contractor, solar paneling my house, solar panel installer, solar panel systems Solar Panels, solar panel, solar paneling, solar homes, commercial solar panels, city of austin solar panel installer, city of austin rebates for solar panels, solar paneling, energy efficient solar panels, solar panel contractor, solar paneling my house,

 

~Find a lot to build on~

 

 

McMansion

 

FREE CONSTRUCTION ESTIMATE AUSTIN AREA TX, construction estimator, construction project estimating, free estimate, free construction consultation

CONSTRUCTION ESTIMATING

512deVeloping

CONSTRUCTION

PICTURE ADS

Central Texas Energy Star Partner-512deVeloping. Building a better future

 

Home Construction

Projects

 

Safety & Employment

 

-Texas Construction Warranties-

Making Reliable affordable

 

Construction pictures, remodeling pictures, modern remodeling pictures austin tx, custom home build finish outs, home builder pictures, green remodel pictures, kitchen remodel pictures, construction photos, remodel photos, modern remodel photos, bathroom photos, kitchen photos, custom home builder photos, modern construction photos of austin tx new home photos

AMERICA'S #1 GREEN BUILDING PROGRAM

Austin Energy Green Builder Participant, green home builder, sustainable living, green construction, energy efficient homes

TEXAS GREEN BUILDER

Contact us for your

next building project

 

Decks and decking, decks, iron decks, trex decks, building a deck, decking contractor, deck construction, deck construction, home decking systems, custom decks, pool decks, decks and deckings

 

swimming pool contractor Austin TX, swimming pool installer, swimming pool construction, fiberglass pools, inground pools, fiberglass pool, swimming pools, fiberglass swimming pools, leisure pools, fiberglass swimming pool, pools, swimming pool build out, pool prices, vinyl pools, leisure pool, fiberglass, Austin texas, pool estimate, modern pools

pools, swimming pool contractor, backyard oasis, patios, pergola patio, swimming pool, pool installer, swimming pool, building a pool, pool construction, modern pool, exotic pools

commercial construction image austin TX