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According to mechanics lien claims, Union Processing Systems owes six contractors over $2 million following renovations to their industrial disposal facility in Montgomery County, Texas. Formerly known as TexCom Gulf Disposal, Union Processing Systems is a wastewater processing company which has had its fair share of controversy since applying for a permit to build deep injection wells for industrial waste in 2005. Local organizations such as Stop The Toxic Wells have protested its construction for…
For contractors considering a home construction project, it’s important to make sure everyone is on the same page before the contract is signed. Here are some important questions contractors should ask the homeowner before the construction project gets rolling. Their answers to these questions will help you decide whether the project is worth it, and prevent payment problems down the line. Why contractors should prequalify the homeowner While it’s true that you need sales to…
A123 Systems LLC, a Michigan-based energy storage manufacturer and developer, was hit with a $2,079,519 construction lien on July 15. The lien claimant, Morgan/Harbour Construction, alleges A123 has failed to pay the multi-million dollar amount for labor and materials provided as part of improvements made to the battery company’s new headquarters in Novi, Michigan.  Lien Filing and Other Litigation  Morgan/Harbour’s construction lien filing arises from work the contractor completed on May 19, 2020. The…
Public works projects are expected to decline through the rest of 2020 and into next year. Due to the unique nature of the funding for public projects, pandemic shutdowns have been particularly hard on contractors performing work for counties, cities, and states. Several industry organizations have attempted to quantify the effect that COVID-19 will have on the public works industry going forward. Keep reading for contractor takeaways and next steps. Public Works Forecast to Decline…
No one can deny that the coronavirus pandemic has had an affect on construction projects, both in increased costs and time delays. Across the country, projects have been affected by shutdowns and changes in safety protocols. But how do you quantify these costs? And who should pay for them? Submitting change orders for cost and time increases related to COVID-19 can help get that conversation started. Pandemic cost changes Recently, two contractor trade groups…
While down payments or upfront deposits are increasingly uncommon on construction projects, some contractors or suppliers do request them. When a payment is made in advance, before materials or work are provided, the GC or owner may request a guarantee in the form of an advance payment bond. Here’s how advance payment bonds work in construction. What is an advance payment bond? An advance payment bond protects a project owner when they are asked to…
A Stop Work Order is a legal tool used by project owners to shut down work on a construction jobsite until the issue is fixed or the parties reach an agreement. Provisions for Stop Work Orders are typical in federal and state contracts, and are often included in private contracts as well.  Stop Work Order in Construction Contracts Generally speaking, your construction contract will determine whether or not you’re susceptible to a Stop Work Order…
Social media giant Facebook was hit with a $3.9 million construction lien claim on a new office building, part of new additions to their headquarters in Menlo Park, California. On a separate project in Playa Vista, a subcontractor placed a $1.5 million lien on an expansion property leased by Facebook. As of July 6, 2020, at least one subcontractor has placed an unpaid work claim against Facebook’s Silicon Valley headquarters pursuant to California statutes governing
Amid reports of two powerhouse Miami shopping malls losing foot traffic due to Florida’s coronavirus spikes, at least four retail centers are currently facing millions in unpaid construction work claims as of August 2020. The four malls include the Esplanade at Aventura shopping center in Miami, the Sawgrass Mills mall in Sunrise, FL, Miami’s CocoWalk Shopping Center, and at the Westfield Broward Mall in Plantation, FL. Foot traffic at the Esplanade at Aventura was…
Following a record-breaking second quarter in the Austin metro area for home building growth, two new housing developments with nearly 200 combined homes in Pflugerville, Texas has 25 active unpaid work claims placed on the properties. A subcontractor hired to work on the housing development projects under construction 25 miles north of downtown Austin has filed $257.6K in mechanics lien claims against the project’s general contractor since July of 2020. Housing developer Gehan Homes owns…