Most construction contracts include a procedure to address claims, with a key part of the process being an initial evaluation, usually by the project architect. The concept is not new. It has been a part of the American Institute of Architects (AIA) contract forms for years. Introduced in 2007 and reinforced within the AIA’s 2017 updates, the “Initial Decision Maker” is the person charged with rendering initial decisions on claims, customarily the project architect  The…

Using construction liens to get paid can be an effective way to protect your work – if you follow the lien rules. A lien is an encumbrance – a legal hold. This hold is placed on real property for the value of the work and materials you provided but for which you haven’t yet been paid. Someone who owns a piece of property cannot sell or refinance that property without resolving the issues connected…

A general contractor entered into a contract to remodel a house. He hired a number of subcontractors to complete the contracted work. The interior designer wasn’t one of them; she had a direct contract with the owner but she performed her work through the contractor. When the owner missed making certain payments to the general contractor because of a disagreement over some change orders, the contractor recorded a claim of lien against the owner’s property.…

You are finally getting to the end of that large remodeling project. The wood decking is done, the replacement siding is in and the new kitchen appliances delivered. So you tally up those few remaining change orders and submit your last payment application. But to your surprise, you hear from the owner that she doesn’t totally agree with your claim for extras. You explain that the scope of the contracted work increased with some of…

You are finally getting to the end of that large remodeling project. The wood decking is done, the replacement siding is in and the new kitchen appliances delivered. So you tally up those few remaining change orders and submit your last payment application. But to your surprise, you hear from the owner that she doesn’t totally agree with your claim for extras. You explain that the scope of the contracted work increased with some of…

You did the work but didn’t get paid. So you sent your notice of nonpayment and backup documents. Why won’t the bonding company pay? Why is it taking so long? It’s important to understand that a surety doesn’t work like insurance. When you have a car accident, you submit a claim to your insurance company, and they cut a check. Most sureties, on the other hand, will not pay you voluntarily unless the principal,…

You did the work but didn’t get paid. So you sent your notice of nonpayment and backup documents. Why won’t the bonding company pay? Why is it taking so long? It’s important to understand that a surety doesn’t work like insurance. When you have a car accident, you submit a claim to your insurance company, and they cut a check. Most sureties, on the other hand, will not pay you voluntarily unless the principal, the…