In a recent client conference, I was asked, “So what is arbitration, anyhow?” In the context of a construction claim or in seeking to prevent such a claim, there are several significant advantages that arbitration can provide in lieu of litigation. In today’s challenging business environment, this signifies awareness of the various options available that could make an important impact on your business’ circumstance.
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?
A Lien (or ‘Mechanic’s Lien’) is a potentially powerful tool for contractors, architects, engineers, or suppliers of materials to secure payment for work performed ‘improving’ a property. To properly ‘perfect’ a lien claim, however, strict compliance with the nuances of the New York lien law is required, and often times there are details in the process commonly overlooked.
General Business Law Section 756 (and the sections that follow it), commonly known as the Prompt Payment Act, establish requirements for how soon a construction contractor or subcontractor must be paid and allow expedited arbitration in the event that prompt payment is not made for qualifying projects.
CAN I BE SUED FOR VIOLATING THE BUILDING CODE?
CLAIMS AGAINST CONTRACTORS AND ARCHITECTS FOR CODE VIOLATIONS
In my construction law practice, I’m often confronted with instances of building code violations and questions of whether building code violations should subject a contractor or architect to liability.
In a nutshell, the “economic loss rule” is a rule that courts use to prevent a plaintiff from against a defendant for a tort (usually negligence) when the essence of the claim is for failure to live up to the terms of a contract.
Contractors are not only responsible for performing their contracted work, but are also charged with keeping the owner and the subcontractors working together to bring the project to completion successfully. Given this, they are regularly the subject of legal disputes. For this reason, many could benefit from an understanding of the following top 5 contractor defenses available in New York.
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?
Many construction contracts in New York make reference to how or why one or both parties are provided the right to terminate the agreement. One such typical form of termination, ‘Termination for Convenience’, may be provided.
Any property owner considering construction work will want reassurance that the work will be done well, and will be free of defects for a specified time frame. Many contractors even include a warranty clause in their contract. Such warranties (also called guarantees) require the contractor to correct any defects through additional work on the project over the specified time. What are some of the specific factors within Construction Warranties?