Quick Note: October 1, 2023 Changes to Florida’s Construction Statutes
November 13, 2023 —
David Adelstein - Florida Construction Legal UpdatesEffective October 1, 2023, there were changes to Florida’s statutory scheme dealing with construction projects. This includes Florida’s Lien Law. A copy of these changes can be found below which identify additions in blue and deletions with strikethroughs. No different than before, if you have questions or concerns as to your statutory rights on a construction project, do the prudent thing, consult a construction lawyer. A construction lawyer can help you understand changes to the applicable statutory scheme or how the statutory scheme pertains to your rights. This is important because you want to make sure you understand statutory changes that apply to your work and rights.
A noteworthy change, bolded in blue below, is that there is now a basis to lien for a contractor performing construction management services “which include scheduling and coordinating construction and preconstruction phases for the construction project, or who provides program management services”:
Fla. Stat. s. 713.01 (8) “Contractor” means a person other than a materialman or laborer who enters into a contract with the owner of real property for improving it, or who takes over from a contractor as so defined the entire remaining work under such contract. The term “contractor” includes an architect, landscape architect, or engineer who improves real property pursuant to a design- build contract authorized by s. 489.103(16). The term also includes a licensed general contractor or building contractor, as those terms are defined in s. 489.105(3)(a) and (b), respectively, who provides construction management services, which include scheduling and coordinating preconstruction and construction phases for the construction project, or who provides program management services, which include schedule control, cost control, and coordinating the provision or procurement of planning, design, and construction for the construction project.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Illinois Non-Profit Sues over Defective Roof
November 27, 2013 —
CDJ STAFFCoordinated Youth and Human Services (CYHS), a family services organization hired Honey-Do Home Repair to design and install a new roof for its building in Granite City, Illinois. Honey-Do removed portions of the roof for testing. A few day later during a rainstorm, a tarp failed, leading to water intrusion and damage to the building.
The CYHS is suing the contractor for $400,000. It is claiming that repairing the damage cost the organization $200,000, and it seeks additional damage and court costs.
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New York vs. Miami: The $50 Million Penthouse Battle From Zaha Hadid
October 28, 2015 —
James Tarmy – BloombergThe Anglo-Iraqi starchitect Zaha Hadid has designed just two residential buildings in the U.S., one in New York (520 West 28th Street in the Chelsea Gallery District next to the High Line) and one in Miami (One Thousand Museum, next to PAMM and overlooking Biscayne Bay). Both have yet to be completed and both, as it happens, have penthouses priced in the region of $50 million.
Two trophy properties by a Pritzker Prize-winning architect and two almost identical price tags? (The Miami penthouse clocks in at a mere $49 million, the New York penthouse an even $50 million.) It’s practically begging for a head-to-head comparison.
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James Tarmy, Bloomberg
Golden Gate Bridge's $76 Million Suicide Nets Near Approval
June 30, 2014 —
Alison Vekshin – BloombergOfficials of the agency that runs San Francisco’s Golden Gate Bridge today approved a $76 million funding plan to erect a suicide barrier along the span, where people plunge to their deaths at a rate of about once a week.
The Golden Gate Bridge Highway and Transportation District’s 19-member board voted unanimously to approve the funding, which includes $20 million from district reserves.
“We must fight mental illness on many fronts and this budget action is a critical component of saving the lives of people who might not see that their brightest days are ahead of them,” Senator Mark Leno, a Democrat from San Francisco, said in a news release yesterday ahead of the meeting.
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Alison Vekshin, BloombergMs. Vekshin may be contacted at
avekshin@bloomberg.net
Prevailing Payment Bond Surety Entitled to Statutory Attorneys’ Fees Even if Defended by Principal
January 09, 2023 —
Garret Murai - California Construction Law BlogFor contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond.
In Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself.
The Cell-Crete Case
General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
These Are the 13 Cities Where Millennials Can't Afford a Home
June 10, 2015 —
Victoria Stilwell and Wei Lu – BloombergThere's no place like home — except when you can't afford one.
Millennials have been priced out of some of the biggest U.S. cities, with residential real estate prices rising even as wage growth remains elusive.
Bloomberg used data from the U.S. Census Bureau, Zillow Group Inc. and Bankrate.com to quantify how much more money millennials would need to earn each year to afford a home in the largest U.S. cities. The good news is that out of 50 metropolitan areas, 37 are actually affordable for the typical 18-34 year-old (scroll down to the end of the story to see the full results).
The bad news is that the areas that often most appeal to young adults are also the ones where homeownership is the most out of reach.
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Victoria Stilwell, Bloomberg and
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Veterans Day – Thank You for Your Service
December 05, 2022 —
Travis Colburn - Ahlers Cressman & SleightHappy Veterans Day
[1] to our country’s servicemembers past and present! ACS would like to express its deepest gratitude and respect in saying thank you to those that have served, or are serving, in our armed forces. It undoubtedly takes incredible bravery, fortitude, integrity, respect, and a commitment to our country’s evolving ideals. Some of those same attributes that are necessary for service are also well-geared toward a post-military career in construction. As some already know, Veterans have unique construction contracting opportunities at both the state and federal level. The following is a high-level overview of the process and opportunities for veterans who are not aware or who are considering a career in construction.
There are federal and state level opportunities for Veteran-owned businesses. The initial step in accessing federal and state level contracting opportunities is different for each but begins with certification/verification.
At the federal level, effective January 1, 2023, all responsibilities for the verification of Veteran-owned small businesses (“ VSOB”) will transfer from the Department of Veterans Affairs to the Small Business Administration.
[2] Verification is the process that establishes eligibility for access to Veteran-specific benefits, including certain government contracts and the purchase of surplus government property, by confirming that VSOBs and service-disabled Veteran-owned small businesses (“SDVOSB”) are operated by Veterans.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
3 Common Cash Flow Issues That Plague The Construction Industry
August 20, 2019 —
Patrick Hogan, HandleThe construction industry has its fair share of serious cash flow problems. The nature of the industry with long periods between billing and collection, the unpredictability of some business factors, and even the day-to-day decisions of stakeholders have a huge effect on cash reserves.
So how can you protect your business from these cash flow problems? Having a greater awareness of the most common cash flow problems is the key to maintaining your financial stability. Here are some of the top cash flow issues that construction companies need to watch out for.
1. Uncontrolled business growth
The growth of a business as a cash flow problem sounds unintuitive. It is supposed to be a positive thing. So how could it hurt your construction business? When it goes out of control.
During the growth phase, the company will need to expand its operations to meet the increasing demand. This means renting a larger office space, hiring more staff, and buying more inventory, all of which can burn through the company’s cash quickly. The more substantial the level of your growth is, the more your cash flow is affected.
Growth is a good thing, but it is important to be aware of the pitfalls that you could encounter that can lead to cash flow problems. If you are dealing with a volatile growth instead of a stable one, you have to think twice before expanding your operations. A quarter with a large number of construction project deals does not guarantee the same happening in a subsequent quarter.
2. Change of scope or scope creep
The scope, or the statement of work, is the foundation that guides a construction project from start to finish. It specifies all the deliverables needed by the project as agreed by all stakeholders. When the existing requirements are altered, new features are added, or project goals are changed uncontrollably, what happens is scope creep and it can hurt a company’s cash flow.
Construction projects can take a long time before they are finished. A lot of factors can result in changes in the scope. There may be changes in the market strategy, market demand, and other unpredictable variables that make changes in the project requirements a necessity. These changes build up and the project may shift away from what was intended, causing delays, loss of quality, and the rise of planned costs.
One way to prevent scope creep from affecting cash flow significantly is charging a fee for variations of the scope of work. However, having a solid and clear scope baseline is still the best way to combat scope creep. Reminding clients of what you signed up for by referring to the baseline is a good strategy to deal with pushy clients.
3. Payment delays and nonpayment
As previously mentioned, the construction industry tends to have a lengthy period between sending an invoice and collecting payments. And if you are too passive in your collection, clients are more likely to extend pay periods and delay paying you.
Unexpected delays in payment and other payment issues can have a devastating effect on companies that have little to no cash reserves. Without a cash cushion to fall back on, payment issues can threaten the existence of the business itself. If you are unable to manage your receivables, you will not have enough cash to pay the bills, pay employees, and fund your growth.
Payment delays and nonpayment can happen for several reasons. They can be simple like mistakes in the invoicing or the person needed to approve the invoice is unavailable. More serious reasons like a client unsatisfied with your service or, worse, trying to scam you are also possibilities. For these reasons, it is crucial to communicate with clients properly and see if you can agree with a payment structure or pursue legal action.
The construction industry operates slightly differently from other industries. Different projects produce different cash flow issues and require different strategies. By being aware of the top cash flow problems that can hurt your construction business, you will be better equipped in dealing with them in case they happen.
About the Author:
Patrick Hogan is the CEO of Handle, where they build software that helps contractors, subcontractors, and material suppliers secure their lien rights and get paid faster by automating the collection process for unpaid construction invoices. Read the court decisionRead the full story...Reprinted courtesy of
Patrick Hogan, CEO, Handle
