Construction Industry Legal Blog

Construction contracts contain many risk-shifting mechanisms. One such mechanism is the “pay when paid” provision that requires payment from one party before there is any requirement to pay another party. Typically, this contract provision is found in the contract between the general contractor and its subcontractors, as well as in the subcontractor’s contract with its subcontractors. If not properly worded, this risk shifting provision will not have its intended consequences.

This is Part VII in a series of Blog posts dedicated to explaining delay damages. Previous posts in the series have discussed proving that a delay occurred, addressed the most applicable and common defenses and varying methods to calculate delay damages—the Total Cost Method, the Modified Total Cost Method, the Eichleay Formula and damages for an increase in labor, material and equipment costs. Another method used to calculate delay damages is the Jury Verdict Method, which is a combination of a few methods previously discussed.

Roofing systems are an integral part of any new construction. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof system for your home or building is one that balances these considerations. This is a three part blog that will discuss basic residential roofing considerations in Florida. Part I discussed the basic components and types of roofs. Part II discussed the “Enemies” of your roofing system. This Part III will discuss various factors and considerations in selecting a roofing contractor.

The 2014 Florida Legislative session came to an end on May 2, 2014. With a $1.2 billion surplus and elections looming in the fall, cuts in state taxes and fees were a priority for Governor Scott and for legislative leaders. Early in the session, the Legislature passed a $395 million roll-back in vehicle and vessel registration fees which may help the construction industry – fees that were increased in 2009 under the watch of former Governor Charlie Crist.

Insurance plays a key role with any business and its business relations with others. While parties may have good intentions as to their respective insurance obligations, they may fail to procure the requisite insurance coverage under the parties’ contract. When this happens, the results can be irreparable.

For those that missed the earlier parts of this Blog series, as of this post, the series has discussed: what is necessary to prove a delay occurred, combating the most common defenses, varying methods to calculate delay damages—Total Cost Method, Modified Total Cost Method and the Eichleay Formula for calculating overhead damages. Often, because of the delay, the work is performed in a higher wage period than initially planned; similarly, the cost of continuing to rent and possess idle equipment negatively affects the contractor. Part six of this series will discuss the potential recovery related to labor, material and equipment escalation costs directly associated with the delay.

In Florida, construction liens provide a valuable remedy to contractors. In order to be entitled to a construction lien, a contractor must strictly comply with the conditions precedent set forth in Sections 713.001 – 713.37, Florida Statutes. One such condition precedent is the commencement of an action to enforce the lien in a court of competent jurisdiction before the lien expires. See Section 713.22. This blog examines a particular nuance of this requirement – enforcing the lien when the contract contains an arbitration provision.

You have proven that a delay occurred, effectively addressed the common and most applicable defenses and sifted through a few available methods to calculate damages. While these other methods, the Total Cost Method and the Modified Total Cost Method, pertain mostly to the actual work done, they do not assist in recovering jobsite or general and administrative overhead. Luckily enough, the courts have been kind enough to create a formula to allow for calculating the monetary amount for home-office overhead that corresponds to the unplanned increase in resources as a result of a delay. This post will discuss what is known as the Eichleay Formula, which is used to approximate the amount of unabsorbed overhead that is a result of a particular delay.

Roofing systems are an integral part of any new construction. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof system for your home or building is one that balances these considerations. This is a three part blog that will discuss basic residential roofing considerations in Florida. Part I will discussed the basic components and types of roofs. This Part II will discuss the ventilation and “Enemies” of your roofing system. Part III will discuss considerations in selecting a roofing contractor.

Once a creditor obtains a judgment against a debtor, attempting to garnish the funds, accounts and assets of that debtor held by a third party is an extremely efficient and often successful means for collecting on that judgment. Chapter 77, Florida Statutes, governs garnishment actions within the State of Florida and provides for two main types of garnishment, which have been discussed in previous Blog posts. These include a Writ of Garnishment issued to a bank or financial institution and a Continuing Writ of Garnishment issued to a debtor’s employer. Although a judgment creditor can utilize both forms of garnishment in attempting to collect on the judgment, under Section 222.11, Florida Statutes, a debtor has the right to make claimed exemptions to garnishment actions when the debtor is head of household. However, such claimed exemptions may not preclude a creditor’s attempt at garnishment in certain situations. This Blog post discusses when claimed exemptions for head of household may not apply to garnishment actions when the debtor is an independent contractor, the sole owner of a corporation or an owner of a single member LLC.