Subcontractor Troubleshooting to do list:

June 29, 2022 | Construction Law

Subcontractor Troubleshooting to do list:

1. General Business Considerations:

(i) proper entity set up- the business should be set up as a corporate entity to limit personal liability issues for the owners.

(ii) proper insurance- establish liability insurance for the work being performed; and

(iii) employment related issues and set up-

Properly set up employees within the required department of labor requirements. 

2. Specific Subcontract Considerations 

(a) -Meet with client and discuss any issues which may exist or site conditions which may be relevant including but not limited to:

(i) hazardous materials; (ii) water intrusion; (iii) underground conditions.

(b) Determine whether  the termination provision appropriate (no unilateral without cause termination);

(c) Are payment terms enforceable/acceptable (no pay when paid provisions);

(d) Is the scope of the work and schedule appropriate as agreed to;

(d) Are there time of the essence provisions that may be removed;

(e) How are disputes resolved in the proposed agreement;

(f) Is it an AIA contract or something else.

(g) Assess the strengths and weaknesses of the agreement, spot potential points of contention, and snuff out potential liabilities.

(h) Does the contract contains troublesome clauses that shift risk, create an amount of liability, or consent to less-than-ideal dispute resolution terms

(i) Draft and revise pre existing contracts;

(j) Provide a master contract as requested which the client can revise to reflect scope of work to be performed on a given job. 

3. Troubleshoot Issues as they arise including immediate access to attorney negotiation of any alleged default issues or deficiencies in the work;

(a) Taking contractual actions –  behind the scenes legal consulting to assist in troubleshooting issues as they arise; exercising a feature of the contract, like a termination clause or an escalation clause. 

(b) Default Notice Preparation/ Defend and Negotiate if a Default is Alleged;

(c) Lien, bond claims and other payment disputes – mechanic’s lien statute and bond claim law; enforcement action lien claim or bond claim; is the claim for prompt payment or retainage; letter demanding payment and threat of legal action

(d) Defective construction claims  – claiming a defect is present or defending against a claim of defective work — RM will be able to decipher the relevant laws and contractual duties in order to uncover who, if anyone, is at fault and who might be liable;

The attorneys at Rodriguez-McCloskey PLLC (“RM”) will provide consistent legal services to your business to ensure that projects and business run smoothly. This will begin with review and negotiation of contracts to ensure maximum protection from liability. Additionally, we will consult your business throughout the relationship to ensure that you have everything you can to avoid a dispute. Below is a summary of the issues which RM may assist with