By Bruce Jervis
On a private construction project, the most valuable asset available to secure the project owner’s obligations is usually the property under development. The property secures the construction loan that finances the project. The property also serves as security, through mechanic’s liens, for contractor payment. So, when a project goes bad, who is first in line, the lender or the constructor?
Generally, the “first in time” rule applies. The timing is easy enough to establish with regard to the lien or deed of trust securing the construction loan. It is the date the document was filed in the appropriate property registry or office. With mechanic’s liens, however, it is not so simple. Regardless of the time of filing, a mechanic’s lien dates back to the day the contractor commenced work. Hence, the “first shovel” rule. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Contractor’s Lien for Extra Work Took Priority over Bank
- Progress Payments Earned at Time of Payment
- Arbitration Clause Did Not Need Independent Consideration
By Steve Rizer
Paying the rates set forth in a union collective bargaining agreement does not necessarily ensure compliance with the prevailing wage rate under the federal Davis-Bacon Act. This is one of the key points that Littler Mendelson P.C.’s Van Allyn Goodwin made during a 90-minute webinar, entitled “Understanding the Davis-Bacon Act and Prevailing Wage Law on Government Contracts,” that WPL Publishing and L2 Federal Resources recently hosted. ... Read more.
By Steve Rizer
On the newly unveiled list of 10 best practices for design-build projects, which practice is being implemented the least across the industry? This is a question that Design-Build Institute of America (DBIA) Executive Director Lisa Washington answered for ConstructionPro Week (CPW) after her organization released a document outlining its recommended top practices -- and nearly 50 supporting implementing techniques -- for procuring design-build services, contracting for design-build services, and executing the delivery of design-build projects. Click here to read her response to the question.