Top 7 Owner Risks in New York Construction Contracts

Construction is fraught with countless risks, from weather conditions, labor strikes, material unavailability, subsurface conditions, and inaccurate plans and specifications, among others. Each has the potential to delay the project, cause increased completion costs, and increase the likelihood of disputes, liens, and litigation.

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Alternative Dispute Resolution An Option For Construction Contractors Under NY’S Prompt Payment Act

 

Perhaps the most common construction-related dispute is the refusal of a party to make payment to its contractors or subcontractors. While litigation is the traditional avenue for resolving such disputes, methods of alternative dispute resolution such as arbitration and mediation are enjoying growing importance in the field of construction law.

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Changes vs. Cardinal Changes: The Limit of Construction Contract Changes

 

Changes are an unavoidable aspect of construction. Although thorough effort and coordination are required in preparing the original project contract, specifications and construction drawings, there will still be changes. This is why owners are provided the right to make changes to the work under a typical contract changes clause.

However, the ability for owner requested changes, even if provided in the contract, are not without limitations, restrictions, and consequences. After all, what purpose would any of the project documents, contracts and drawings serve if they were subject to constant change? What good would the contract serve if the owner could make any change(s) without consequence?

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Homeowner Liability for Contractor Injuries in New York

 

Can homeowners be held responsible for injuries that may occur to contractors while work is being done on their property? Many homeowners love new home face-lifts, but did they ever think what a dangerous home improvement job consisted of? Well, what happens if a contractor is injured while working? Who is responsible for their medical costs?

With respect to homeowner liability for contractor injuries in New York, homeowners of one or two family dwellings are exempt from liability from any contractor injuries suffered while work was performed on their property under labor law § 240 & § 241, unless he or she has directed or controlled the work being performed.

Under New York State Law §§ 240 and 241 a homeowner can be found liable for any resulting contractor injuries only if their contractor can show the homeowner provided specific instruction as to how work is to be performed or the homeowner provided certain tools or equipment to be used.

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Although, incidental homeowner interactions are not sufficient to invoke homeowner liability for injuries, a showing of directing the actual work performance is necessary.

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Considerations When Hiring an Architect

Often owners find themselves wondering if they need an Architect for their project, and might be unfamiliar with terms and forms of contract used. This article provides a refresher on the types of projects an Owner should have an architect, and the typical forms of contracts used.

An architect licensed and registered in New York provides services related to the design and construction of buildings and the spaces around them, where the safeguarding of life, health, property, and public welfare is concerned.[1]

Although there are situations where involving an Architect is discretionary on the part of the owner, generally, if new construction, alteration to an existing structure, plumbing, or HVAC is contemplated, construction drawings sealed by an architect will be required by your building department before your project can begin.

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Construction Contract Document Conflict

Given the large number and variety of documents required to administer a construction project today (plans, specifications, contracts, etc.), the likelihood of discrepancies arising between these different sources is almost unavoidable.

Do you know how these documents rate in terms of their authority? Continue reading “Construction Contract Document Conflict”

Top 3 New Construction Arbitration Rules That Expand Powers and Challenge Assumptions

When it comes to construction contracts, arbitration and mediation (Alternate Dispute Resolution) are both commonly specified for out of court dispute resolution.  The use of mediation and arbitration in construction contracts, both for small and large construction, has been increasingly common over the past decade.

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Appellate Court Upholds Contractor Indemnification

Indemnification is an important legal concept which impacts nearly all construction contracts. It has several forms and types, but generally amounts to a contract requirement where one party party agrees to restore the other party from any losses. Where an anticipated loss should occur, the damaged party can expect reimbursement for the loss.

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Deconstructing the Construction Contract

John Caravella, Esq. of The Law Offices of John Caravella, P.C. will be one of three presenters at the Nassau County Bar Association Construction Law Committee’s seminar, next in its series of presentations addressing issues in the field of Construction Law.

On December 18, 2012, at 12:30 pm, the Construction Law Committee in the Founders Room at the Home of the Association,  will present Deconstructing the Construction Contract.

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If You Want a Construction Contract Enforced, You Need Your License

Recently, a contractor asked me how to create a good contract. After further discussion, I understood that this contractor was not licensed, but wanted advice on obtaining a good contract.

Well, what is a good contract after all?

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