On many construction projects, the general contractor may be required to furnish a performance bond. That performance bond guarantees the completion of the prime contract if the general contractor defaults. A performance bond is a three-party contract between a surety (the party promising to be responsible if the principal fails […]
As a subcontractor, payment for your work is critical. If a subcontractor is not getting paid on a construction project, there are some important things to consider, including whether the general contractor has grounds to withhold payment, whether the subcontractor can stop the work, and how a subcontractor can best […]
When a building owners hires a contractor to construct a building or other construction project, the contractor is often significantly more experienced when it comes to the ins and outs of the construction contract as well as the overall construction process. Oftentimes, a building owner may simply accept the contract […]
The coronavirus or COVID-19 pandemic (or perhaps the resulting monetary policy) has caused materials costs to skyrocket. In the past year, as of early February 2021, steel prices are up about 27%; copper prices are up about 37%; rubber prices are up about 62%; lumber prices are up about 113%; […]
Subcontractors are often stuck in a situation where the general contractor refuses to pay them because the general contractor has not been paid by the owner. In support of their refusal to pay, general contractors may rely on a “pay-if-paid” provision in the subcontract. Due to the risk of nonpayment, […]
On July 1, 2020, the Occupational Freedom and Opportunity Act (the “Act”) became law, which eliminated some barriers for construction contractors to become licensed in Florida. Particularly, the Act: (1) clarified that a passing result on a licensing examination does not expire; (2) eliminated the requirement for some applicants to […]
When property owners make improvements over $2,500 to their property, they must record a Notice of Commencement in the public records where the project is located. A Notice of Commencement signals the beginning of a construction project, and provides protection to the owner, contractors, subcontractors, and suppliers. If a contractor, […]
Pursuant to the Miller Act and Florida’s Little Miller Act, when certain subcontractors and material suppliers have not been paid on public construction projects, they must file their lawsuit on the payment bond within one-year after the last day labor was performed or materials were supplied to the project. § […]
Before a property owner can make improvements over $2,500 to their property, Florida law requires the owner (or authorized agent) to record a Notice of Commencement in the public records where the project is located. A Notice of Commencement signals the beginning of a construction project, and provides protection to […]
Teaming agreements in the construction world, also referred to as teaming arrangements, are agreements between two or more independent companies to combine their resources, abilities, and knowledge, for the purpose of obtaining and, if successful, performing a competitive bid construction contract. If done properly, teaming agreements can assist these companies […]