Most construction professionals regularly file or dispute mechanic’s liens and feel fairly comfortable dealing with them. However, this experience is often concerning a single building constructed under a single contract. Professionals don’t regularly deal with contracts covering multiple buildings. Therefore, professionals often try to follow the same rules they use to file a single lien
Can force majeure clauses offer relief from steel tariff costs?
The United States’ recent imposition of a 25 percent tariff on imported steel has been problematic for contractors and subcontractors alike. The increased cost of steel means increased costs on projects, and in many occasions, on projects for which parties have already entered into contracts. In fact, benchmark U.S. steel prices have risen almost 40
The importance of timely and proper notice of a claim under a contract
The author has practiced construction law for nearly 40 years and continues to be amazed or disappointed, as the case may be, by the frequency of one type of problem: Non-compliance with what are usually simple contract terms for giving notice of a claim for additional compensation, damages or time.
Why does this happen? Sometimes
The lien against public funds in Illinois
Subcontractors and suppliers performing work in Illinois do not have the right to file a mechanic’s lien on publicly owned property. Despite this, the “lien against public funds” provides a useful tool for subcontractors that have performed work on public projects in Illinois and have not been paid.
Per 770 ILCS 60/23, any person furnishing
The building and construction industry exemption to withdrawal liability
Businesses with a large number of union employees can often feel trapped in union-sponsored pension plans. This is because “withdrawal liability” — i.e., the employer’s share of an underfunded multiemployer pension plan’s liabilities — can be huge, easily in the tens of millions of dollars. However, as explained below, there is an exemption that employers
The importance of proper licensing for contractors
The potential ramifications of performing construction without being properly licensed can be severe. Fines and penalties are only the tip of the iceberg. For example, in several states, a contractor that is not properly licensed is precluded from filing a mechanic’s lien. In other states, an unlicensed contractor is precluded from bringing a lawsuit to
Mechanic’s lien waivers in Missouri: A seemingly simple concept with significant implications
If you are a contractor, subcontractor or other entity offering construction goods and services, you probably know that the ability to place a lien on property for the unpaid value of labor and materials provided is a great piece of leverage. Conversely, if you are a property owner, you have likely had to take steps
Overview of the FAA’s Regulations of Drones
Last year, the Federal Aviation Administration (FAA) codified regulations governing the operation of unmanned small aircrafts or drones. The regulations, which took effect August 29, 2016, are 23 pages long as published on the federal register online, and the FAA commentary is even longer. Highlights are as follows:
- The regulations apply to a drone and
New Missouri law will restrict public-entity mandated project labor agreements on public works projects
Effective Aug. 28, 2017, public entities in Missouri will no longer be permitted to require a project labor agreement (PLA) on a public works project. A PLA typically is signed by the contractor, subcontractor and trade labor unions and sets forth the terms and conditions affecting the employment of labor on a construction project covered
Supreme Court reinforces Federal Arbitration Act’s pre-emption of state laws
In a recent ruling, the U.S. Supreme Court sustained the well-established principle that the Federal Arbitration Act pre-empts state laws that specifically disfavor arbitration agreements.
In Kindred Nursing Centers, L.P. v. Clark, et al, 16-32 (May 15, 2017), the U.S. Supreme Court overruled a Kentucky Supreme Court decision not to enforce arbitration agreements between