When a home or other building is being built or renovated, there will typically be a loan involved to fund the project. Just like with a traditional mortgage, if the parties involved fail to make their payment as agreed, the property can enter foreclosure. When learning about situations in which a construction loan can be […]
When someone wants to hire a contractor to take care of a job for their home or business, one of the first things they will often look for is a contractor’s license. Contractor licensing is important both for the clients (it gives them peace of mind) and for the contractors (it helps them to get […]
For many contractors, remodeling jobs are their “bread and butter.” These jobs can range from redoing a small room to huge renovations and can account for a large percentage of your annual income. While the vast majority of these types of jobs will go off without a hitch, it is important to have a legal […]
When drafting or reviewing a construction contract, it’s important to watch out for a few important things. These contracts are designed to clarify what work needs to be done, how it should be completed, the costs involved, and much more. When drafted correctly, a contract can help to avoid disputes over a job. When written […]
“Subrogation” is the right and power of an insurer to legally go after third parties that caused the insured a loss. This is so the insurance company can recover what they paid to the insured. When writing or reviewing a new contract for a construction project, you may hear about something known as “waivers of […]
A surety bond is a common tool used in construction contracts to help protect the interests of construction companies and others involved in the project(s). When a construction company hires a subcontractor to complete a certain task, they may also require a surety bond to be in place. This way, if the subcontractor does not […]
When you need a construction job completed properly, it is very unlikely that you’re going to want to manage the day to day activities that need to be completed. To get things done right, you’ll need to hire a construction manager to oversee the project. Part of hiring on a construction supervisor or manager is […]
Construction companies and contractors are typically able to accept and complete jobs without any significant problems. Unfortunately, disputes related to these types of jobs are all but inevitable when you’ve been in this business for long enough. In many cases, these types of disputes can be resolved through dialogue, mediation, and other resolution techniques. Sometimes, […]
Whenever taking on a large construction project, it will be necessary to negotiate a draw schedule with the lender. A draw schedule takes the full amount of the construction loan and splits it up into multiple payments that are made as work is completed. This helps to limit the risk that the bank takes on, […]
A claim of lien is a specific type of legal claim against property to secure a debt. The claim can be for any amount of money, or the specific value of services rendered. In most cases, the claims of lien are handled when the debt is taken out and agreed upon by all parties involved. […]
When planning a new construction project, getting the needed financing is one of the most important steps. Most lenders aren’t going to want to simply ‘write a check’ for the full amount of the entire project before it has even begun, however. This is where a document known as a draw schedule comes in. A […]
A mechanic’s lien is fairly simple in concept, but can get complicated in practice. To put it simply, this type of lien helps to provide assurances to the people who are doing the actual work on a job that they will get paid. This is important because many construction companies will perform the work with […]
Major building projects typically cost millions of dollars to complete and they won’t start making any money until sometime after the construction has been finished. In order to finance these large-scale projects, a funding agreement needs to be in place between the people or company who needs the construction done and the financial institution(s) who […]
Construction projects can be extremely costly and complex, which is why it is important to have everything in order before anything is started. Customers and construction companies should also keep in close contact throughout the job to ensure there aren’t any miscommunications. Once a project is finished, both construction companies and those who hire them […]
