This blog will be the first blog in a series of blogs exploring the main differences between the New Jersey Construction Lien Law and the Pennsylvania Construction Lien Law. Continue Reading New Jersey Lien Law vs. Pennsylvania Lien Law: Notice and Timing Differences
As all general contractors are aware, problems often arise during the performance of a construction project with subcontractors or vendors who are improperly performing pursuant to the terms of their contract. The question becomes what is the best way to address these issues in order to contain them, and moreover, to ensure a smooth transition to replacement a contractor or vendor if necessary. This article shall give a brief overview of some steps that a contractor can take.
As a subcontractor on a project, whether commercial or residential, you are always dependent upon payment from an upper tier contractor or general contractor, as you have no direct relationship with the owner. As such, you are at the mercy of the general contract when it comes to receiving payment.
In the course of providing construction services for commercial properties, a contractor often performs jobs where they are providing materials and services to a commercial tenant at a leased property. What contractors need to be aware, however, of their rights to file a construction lien concerning work performed for a tenant on a leased property. The pivotal fact in this analysis is whether the owner of the property consented to the improvements that were performed. As discussed below, this ultimately determines whether the lien possesses any true value.
Once an individual is appointed as the Executor of the Estate, the Executor may utilize Estate funds in order to undertake actions which are in the best interests of the Estate. Such actions may include defending against claims brought against the Estate by beneficiaries, potential beneficiaries, or third parties.
In this blog we will explore the basic concept as to when a lower tier contractor can sue an upper tier contractor. The generally well accepted principal of law is that a contractor can only sue a party with whom it has a direct contractual relationship. In other words, unless there is a signed contract between two contractors, an upper tier contractor and a lower tier contractor, the lower tier contractor would not have the right to file suit against the upper tier contractor. Likewise, an upper tier contractor would not have a right to bring a lawsuit against a lower tier contractor with whom it does not have a direct contractual relationship with. In the context of a typical construction project, this rule of law has many different considerations, as discussed below.
Although some contractors may be unaware, the process for filing a residential construction lien is markedly different than the process to file a construction lien with regard to a commercial property. As to a commercial property, the requirements are relatively simple. First, there must be a written contract to provide materials and services. Next, the services must have been provided pursuant to the contract. Further, there must be non-payment for the materials or services by the owner of the commercial property. Finally, the lien claim must be filed within 90 days of the last time that materials or services were provided. Most contractors wrongfully assume that this same process applies to residential construction projects.
In this blog we will explore the scope of permissible back charges that an upper tier contractor can levy against a lower tier contractor pursuant to a subcontract. The basic tenement of contract law is that the non-breaching party is entitled to be put into the position as if the contract had been properly performed by all parties. In other words, the damages are limited to what the parties would have received had the contract been fully and properly performed.
When a project involves the construction of public works, or other improvements to a municipal, county, or a state property, a payment bond is typically posted by the general contractor for the project. This is required as lien claims are typically disallowed whenever project involves a state, county or a municipal property.
In State, County, or Municipal projects, payment bonds are typically required of the general contractor, as the commercial Construction Lien Law is inapplicable to these projects. Copies of the payment bond are always provided to the relevant government agency, as well as to all direct subcontractors or suppliers with whom the general contractor has directly contracted.