Construction Law
| "Substantial Completion" of Construction Contract |
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| Once a construction contract has been substantially completed, the owner is liable to the contractor for the final payment on the contract price. The contractor must prove "substantial completion." Thereafter, the burden shifts to the owner to prove otherwise or show defects in the contractor's work that impacts the project's completion. More... |
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| Retainage, In General |
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| A retainage is a portion of the payment owed to a contractor that is withheld by the owner. The retainage amount is usually comprised of a pre-established percentage of the amount earned and due to the contractor. The construction contract will provide the details as far as percentage retained and retainage procedure. More... |
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| Joint Venture for Completion of Construction Project |
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| In order to effectively compete for a construction project, some contractors may enter into joint venture agreements. One contractor, alone, may be too small of an outfit to proffer the necessary financial, labor, and equipment resources for the project. However, if the contractor joins forces with another contractor, their combined resources could make it possible to submit the winning bid and complete the project without hardship to either entity. More... |
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| Bankruptcy of Owner and its Ramifications on Construction Project |
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| When the owner of a construction project files for bankruptcy, all participants on the project will feel the effects. Usually, the owner will seek to complete the project utilizing the bankruptcy tools at his disposal. Owners reorganizing under Chapter 11 can assume beneficial executory contracts or unexpired leases and reject others. More... |
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| Mechanic's Liens |
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| The mechanic's lien, also known as a materialmen's lien, is a statutorily-created tool used by contractors, subcontractors, suppliers, and others to 1) secure payment for the work performed or materials furnished in the construction, repair, or improvement of a building or other structure and 2) protect against the unjust enrichment of the property owner. More... |
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