VOLUME 2   ISSUE 8   FEBRUARY 22, 2013


By Bruce Jervis


Contractors performing work without proper state licenses are in great jeopardy. Under the statutes and/or case law in many states, unlicensed contractors cannot enforce the construction contract. To be blunt, they are not legally entitled to payment for their work, no matter how outstanding that work may have been.


What of the parties who do business with unlicensed contractors? In theory, they are the ones being protected against the shoddy work of the unlicensed. Sometimes, however, parties knowingly contract with the unlicensed. Can they accept the benefit of the bargain, construction work performed at considerable cost, and then refuse to pay on the grounds the contractor lacked a license? ... Read more


Featured in this Week’s Construction Claims Advisor:

  • Contractor with Knowledge of Sub’s Unlicensed Status Could Enforce Subcontract
  • ‘Aesthetic Effect’ Exception to Arbitration Based on Trade Usage
  • Contractor Did Not Violate California Claims Act


By Steve Rizer


Is there a concern that partners using the new ConsensusDocs 299 Joint Venture LLC Agreement will assume, mistakenly, that there is less of a need for communication among themselves because their roles and risks are more clearly spelled out in the agreement? In an interview with ConstructionPro Week (CPW), Carrie Ciliberto, deputy executive director and counsel for the ConsensusDocs coalition of associations, expressed no such concern and commented that, “as with all ConsensusDocs contracts, the parties [to a 299 agreement] are encouraged to have direct communications early and often…. Although having clearly defined roles and risks may lead one to believe that there is less communication, that should not be the practice.” ... Read more.


By Steve Rizer


Because there has been a reliance on rating systems, “we [as an industry] haven’t always incorporated the best practices in the key areas that make for good building performance,” George DuBose, vice president of Building Consulting Services with Liberty Building Forensics Group in Orlando, Fla., told various professionals attending a webinar that WPL Publishing held earlier this month. Among such key areas are indoor air quality, humidity control, and waterproofing, he said.


“We haven’t always incorporated those best practices because [of] the prescriptive nature of rating systems, and as those rating systems have influenced standards and influenced codes, we’ve seen that risk flow through all the way up into codes,” DuBose said. In addressing a target audience of engineers, architects, owners, contractors, subcontractors, design professionals, and construction law attorneys, he asserted that “building green is a noble goal, but it is a risky endeavor.” ... Read more.


By Steve Rizer


February 2013 Download Library Addition
As new webinar recordings are made available to the ConstructionPro Network free member Download Library on a monthly basis, ConstructionPro Week will provide a brief summary of each event for the benefit of its readership. Here is the summary for the February 2013 addition:


One of the lessons that can be learned from recent design-build case law is that design-builders are being held responsible for problems caused by third parties, Capital Project Strategies LLC President Michael Loulakis said late last year during a WPL Publishing webinar, a recording of which recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library -- free of charge for members.


In discussing this point, Loulakis told a target audience of owners, consultants, engineers, architects, subcontractors, and construction law attorneys, “The question is ‘How strong is that responsibility that design-builders are being held for dealing with problems caused by third parties?’ And the more specific question … is ‘How does the contract allocate risk when performance is frustrated by the actions of a non-party?’” ... Read more.





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