Going green isn’t only good for the environment. It can be great for your wallet too! In the aftermath of Hurricane Katrina, it is important to keep in mind that homes built with sustainable, energy-efficient materials are often less vulnerable to weather and adverse natural conditions, including wind, hail and storms. Going green has become increasingly popular in the construction industry. In fact, thousands of companies and institutional organizations are now investing in the construction and renovation of new “green” and high-performance homes.

Here are some “sustainable” building tips to help you go green and save cash:

Go Green Right Away

One of the most cost-effective ways to go green, is to start green. Transitioning into a green development once you already began on your project can prove to be costly and inefficient. Try to invest in green building from the start.

Get Together

Get as many of the project participants involved as quickly as possible. Meaning, get your owner, architect, general and subcontractors on the same page. Everyone should agree to uphold some green requirements and to meet some cost-efficient goals.

Harness the Sun

Daylight is one of the best ways to help keep costs low.Add more windows and make sure to invest in proper building orientation to help develop a strong daylight saving strategy.

Anticipate Delays

Going green can mean going slower. Plan for this and make sure your schedule allows for some hang-ups.

Insurance Premiums

Some insurance companies may offer lower premiums for homes that comply with the LEED v2009 requirement of 20% water savings. Updating these systems in your home can not only save you in future water damage and mold claims, but also in insurance premiums.

Smart Contracting

Performance-based contracts are a great way to help ensure your energy targets are met. The right incentives can help get performance goals met quickly and efficiently. Here at Wolfe Law we help clients construct the construction contacts they need to help build effectively and save funds.

We often help our clients build sustainably and efficiently. Contact us today for all your green needs.

Have an annoying illegal lien on your property? Don’t worry – there’s a great way to get rid of the invalidly filed lien quickly and painlessly.In Louisiana, a summary proceeding, called a Mandamus action, can help remove an illegal lien from the title of your property. At Wolfe Law, we always recommend our clients keep a clear title on their property and a Mandamus suit is a great way to ensure this.

Here are five facts to keep in mind:

Here at Wolfe Law, we have experience in filing Mandamus actions to remove illegal liens.If you have an illegal lien and need help removing it, contact us today.

Won’t Take Too Long

A Mandamus action is a summary proceeding, meaning it shouldn’t take too much time to process and implement. Unlike ordinary litigation, a summary proceeding is an alternative form of litigation conducted without formalities, such as formal discovery, that helps provide for a speedy and prompt resolution to the matter.

Louisiana Law Has Your Back

In Louisiana, the Louisiana Private Works Act governs construction liens for private projects.Under this law, if all proper notice requirements are followed and the illegal lien is not removed from the mortgage records by other means than the Mandamus proceeding, then the property owner who brings the Mandamus suit is entitled to attorney fees and costs.As this sort of proceeding may cost you thousands in legal fees, this is a huge benefit.

Details Are Important

As with other forms of liens, the timing and technicalities of filing a lien is critical in order to preserve one’s rights. If a lien is not filed correctly against your property, you can have the lien removed, even against the will of the party filing the lien.

Clear Your Record

Even if you do not see an imperative need to do this today, you should still file suit to have illegal liens removed from your mortgage records. We recommend not waiting till an urgent need arises, such as wanting to sell your property or make changes to it. Selling or refinancing property is difficult, if not impossible, with an unclear title.

Get Represented

In Louisiana, a Mandamus suit for removal of an illegal lien can only be filed by an attorney (or individual if self-represented). Unless you are well-versed in how to file a Mandamus suit in a timely and orderly fashion, we recommend seeking advice from legal counsel. Many attorneys in Louisiana refer lien removal cases to Wolfe Law because the law is very technical.

Here at Wolfe Law, we have experience in filing Mandamus actions to remove illegal liens. If you have an illegal lien and need help removing it, contact us today.

Simply put, the construction change directive is a means by which an owner can direct a contractor to perform additional work that was not originally included in his/her contract when there is a time and/or cost issue between them. Though the construction change directive is just one means by which an owner can accomplish this, it is important to fully understand this mechanism and what it could mean for you. Here at Wolfe Law, we try to familiarize our clients with the legal ramifications of the construction change directive. Louisiana law is not settled on this area of the law, therefore contractors and owners should tread lightly.

What is the Construction Change Directive?

Though a construction change directive sounds similar to the change order, it entails entirely different legal implications. A construction change directive is a written order directing a change to the contract terms and states the adjustments, if any, to the contract sum and/or time. As its name already implies, a construction change directive is a “directive” and not a request. Unlike a change order, the owner and contractor do not need to agree on timing/price for a construction change directive to be put into use.

When is it applied?

There are several circumstances in which one may want to use a construction change directive. For instance, a construction change directive is useful when changes are needed but the parties don’t have the necessary time to prepare a change order proposal and complete the official review process. A construction change directive is also useful in case changes to the project are necessary, but the value cannot be determined at the time. A construction change directive may also be useful when the owner gives permission for the contractor to proceed without first determining the cost/timing.

How is it applied?

A construction change directive is applied upon delivery to the contractor. It is a single document that has the following four basic sections:

• A section summarizing the relevant project information, including a brief description of the change that is being directed;
• A section with the proposed price adjustment;
• A section with the proposed time adjustment; and
• A section for the signature blocks of the Architect and Owner. There may also be a signature block for the Contractor (though this is not required).

Next Steps

If you would like to issue a construction change directive on your project, it is important to understand the risks/rewards you may be exposed to by directing additional and/or different work.We recommend speaking to a knowledgeable attorney. Here at Wolfe Law, we are ready to take on all your construction change directive questions.

In the world of construction law, change orders are some of the most litigated and disputed documents you will come across. Though often contentious, a change order can be a useful tool for any project owner, contractor or subcontractor. As a project moves along, many unexpected conditions and circumstances can occur. With a change of position often comes a change of expectations. This is when the change order can come into play, helping you adjust the contractor’s duties and responsibilities accordingly.

Understanding the Change Order

A change order, also known as a modification order, is an order given by a project owner, which directs the contractor to change the contract amount, requirements and/or time. Change orders alter or modify the final documents upon which construction contracts are based. Rather than merely request for a change to the work plan, change orders direct such change and thereby impact both time and finances needed to finish the project.

In order for a unilateral change order to be valid without the consent of the contractor, all changes must be within the scope of the original contract and in accordance with the contract’s “Changes” clause. Louisiana is one of the few states that allows for oral change orders, but these oral change orders can be prohibited by a clause in the original contract.

The Standard Change Order

To help combat and control all the potential changes during an often lengthy construction project, the construction industry has standardized the form and use of change orders. To avoid future conflicts, most construction contracts give detailed instructions on how change orders are to be written, including which steps must be taken in order to initiate a change. Change orders usually have to state the amount of dollars and the amount of time necessary for the request. Ordinarily, they must be submitted within a certain time before the scheduled work is to commence and should be signed by several individuals who were previously designated to approve or deny a change order request.

Conflicts May Arise

As well prepared as you may be for your change order request, conflicts may still arise. Owners are generally suspicious that change orders may cost them money down the line, in price assessment and project delays.Contractors on the other hand are weary of discounted change orders that do not properly assess the required time and expenses needed for the change request. The necessity of change may be debated and the topic of who should bear the cost of the change may be heavily contested. To avoid finding yourself in a construction nightmare, consult with the right attorneys before issuing your change order.Here at Wolfe Law, we are always ready to answer all of your change order questions.

As a contractor, subcontractor or an owner, when you are about to sign a contract, you may not be aware that a variety of options are available to you. In fact, you may have been signing onto the same sort of contract for various sorts of business transactions. Here at Wolfe Law, we always want our clients to know about the contracts available to them, so that they can tailor the nature of the contract to their specific needs.

Remember that a contract is simply a deal where there is offer and acceptance. One party promises to do something in exchange for something else. In the construction world, it’s the exchange to perform a service for a sum of money.

Construction contracts are often defined by the form of reimbursement they offer to the contractor. Here are three common contract types you should keep in mind for your next construction deal:

Cost-Plus Contract

In a cost-plus contract, also known as a cost-reimbursement contract, a contractor is paid for all of his/her necessary expenses stemming from the construction contract, up to a certain pre-negotiated limit, plus an additional payment for profit.

There are several common versions of a cost-plus contract, including cost-plus-fixed fee, where the contractor is paid a pre-determined fee that was previously agreed upon; cost-plus-incentive fee, where the contractor is paid a larger fee for meeting or exceeding performance targets; and cost-plus-award fee, where the contractor is paid a fee based on his performance.

Fixed-Price Contract

In a fixed-price contract, also known as the lump sum contract, the contractor is paid a total pre-determined fixed price for all construction activities. As opposed to a cost-plus contract, a fixed-price contract does not account for the amount of resources or time used for the project.Fixed-price contracts often include incentives and/or penalties.

Time and Material Contract

In a time and material contract, the contractor will be paid according to the work performed and the material used, regardless of how much total work is required to complete the project. There are some time and material contracts that set an upper cap on total price and duration.

Particularly in the construction industry, where timing and cost may vary greatly depending on the project, the type of construction contract you sign can have an incredible impact on your future earning potential. We recommend you speak to a licensed attorney before picking which contract works for you. Contact the contract attorneys at Wolfe Law for all your construction contract needs.

If you’re about to sign a construction contract, you need to be aware of some important clauses that may and/or should be incorporate into your contract. Certain clauses are critical for any contract to effectively protect your rights and minimize your liabilities.

At Wolfe Law, we always carefully review the contracts our clients are considering. Here are 5 clauses we recommend you pay attention to in your construction contract:

1. Scope of Work

Though the scope of work clause may seem simple enough, it is often overlooked or taken for granted.It is critical to clearly define the scope of your assignment and to make sure that each party is satisfied with the understood terms. To avoid disagreements in the future, expectations should be set out from the very beginning.

2. Indemnification

An indemnification clause obligates one party to compensate the other party for certain losses or damages resulting from third-party claims. This compensation is unrelated to other contractual obligations and damages. An indemnification clause can help protect you against future liability.

3. Payment Conditions

Make sure you know the conditions upon which you will receive payment for your work. To help determine this, you should have a cost breakdown of the entire project ready as part of the contract negotiation process.

4. ADR Clause

This can be Arbitration and/or Mediation. Though not all construction contracts have them, arbitration clauses may prove to be extremely helpful in case of a future dispute. Arbitration and meditation can help cut costs of potential litigation. Consider what sort of arbitration suits both of your needs best and include these provisions in the contract. There are many versions of arbitration and we recommend you consult an attorney before deciding which one to incorporate into your contract.

5. Choice of Law and Jurisdiction

The choice of law clause helps determine which set of laws governs the contract.This is a critical clause, especially where parties and the work cross state borders. Different states have different laws and it is important for you to know which set of laws governs your contract. In addition to knowing which law governs, it is also helpful to decide where the parties will go to court. The jurisdiction clause may save you in time and cost of travel, not to mention inconvenience, in the case of future litigation.

We understand that contracting is never easy. Negotiations and drafting can become confusing and burdensome.Thus, an attorney should be on hand to help your understand the risks and benefits of the contract you are considering. At Wolfe Law, we have years of contracting experience, especially in the construction industry. We would be happy to help you with all your contracting needs.

Particularly in the construction industry, where timing and cost may vary greatly depending on the project, the type of contract you sign can have an incredible impact on your future earning potential. We recommend you speak to an attorney before picking which contract works for you. Contact the attorneys at Wolfe Law for all your construction contract needs.

Unfortunately, many forms of employment still come with the risk of physical injury and/or even death.In 2013, 4,585 workers were killed on the job, accounting for roughly 12 deaths per day, or 88 per week. The construction industry, which is a particularly dangerous realm of employment, accounted for nearly 828 of these deaths. According to the Occupational Health & Safety Administration (OSHA), a governmental agency responsible for monitoring employee safety standards, there are four top causes of death on construction sites, the “fatal four,” which accounted for more than half of construction worker deaths in 2013.

At Wolfe Law, we believe the more our clients know about the potential risks of the trade, the better they can protect themselves and others. Here are the four leading causes of construction-related fatalities that you should be aware of today:

Fall

Accounting for 302, or 36.5%, of construction worker deaths in 2013, falls are by far the most common cause of construction-related deaths. Many construction projects require working at great heights, in adverse weather condition, and for long periods of time. Falls commonly occur from floors, roofs, and platforms.

Struck by Object

Accounting for 84, or 10.1%. of construction worker deaths in 2013, struck-by-object (“struck-by”) is the second most common cause of fatality in the construction industry. Most of struck-by fatalities involve heavy equipment, trucks and/or cranes.One common form of a struck-by hazard is the flying-object, which occurs when something has been thrown, hurled, or is being propelled across space. Additionally, a hazard can exist if an object is ejected under power by machinery and/or equipment.

Electrocutions

Accounting for 71, or 8.6%, of construction worker deaths in 2013, electrocution is the next most common cause of construction-related fatalities. Common electrical hazards occur as a result of defective machinery and/or tools, improperly installed outlets and wiring, and overhead power lines.

Caught In or Between

Accounting for 21, or 2.5%, of construction workers’ deaths in 2013, caught in or between is the fourth most common cause of construction-related death. Some of the most common causes of hazards in this category are related to being caught in machinery, caught between two pieces of equipment and/or walls, buried in a trench collapse, and/or buried by collapsed scaffolding.

Now that you are aware of the four most common causes of construction-related deaths, you may be asking yourself what you should do next or if you are injured at a construction site? We recommend consulting an expert about the best ways and methods to avoid future injuries and liability. Here at Wolfe Law, we have years of experience in the construction industry. We would be happy to address all your construction safety questions or concerns. We also help companies develop strategy to avoid injuries or what to do when an accident occurs.

An eviction can me an incredibly difficult process for any tenant to experience. Regardless of the reason for the eviction, tenants still have rights that cannot be ignored. In fact, landlords must always abide by relevant state law and the particular provisions in the rental contract that set forth the conditions of a potential eviction.

In Louisiana, there are specific rules and procedures that all tenants must follow when considering an eviction. Here at Wolfe Law, we want you to be aware of the following basic rights you have as a tenant in Louisiana:

1. Self-Help Evictions Are Illegal

State law forbids the landlord from taking the law into his own hands. Thus, any “self-help” evictions, such as changing the locks and/or turning off electricity or heat, are strictly illegal.

2. Notice to Vacate

Under Louisiana law, the landlord must prepare a “Notice to Vacate Premises,”which is properly addressed to the tenant. For ordinary yearly leases, this notice must generally be given with at least five days notice to move for expiration of terms, such as non-payment of rent.In addition, this notice may be given for noncompliance with the conditions of the lease, including for causing damage to the property or keeping the property in unsanitary conditions.

Remember: This notice is not a court judgment. It is merely a notice of your landlord’s intention to file a lawsuit for eviction if you do not move out by the end of the notice period.

3. Rule to Evict

Even if the tenant has still not moved out after the expiration of the 5-day notice period, the landlord may still not resort to his own eviction devices. Instead, he/she must file a “Rule to Possession,” asking the court to evict you.

4. Contract Terms

Keep in mind that the terms of your rental agreement, may affect your rights.For example, many residential leases contain a “waiver of notice” condition, which would allow the landlord to immediately file a Rule of Possession to evict the tenant if he/she holds over after the expiration of the lease.

5. Don’t Feel Threatened

No matter what the circumstances may be, your landlord has no legal right to evict you without a court order. If he/she tries to do so before securing court approval, you may call the police.You may also move out of the property or try to negotiate terms with your landlord directly.

If you are facing an eviction or a landlord who needs to evict a tenant, always consult with a lawyer to find out what your options are. Here at Wolfe Law, we would be happy to help with all your eviction questions.

If somebody owes you money, no matter the reason, you may be frustrated and unclear of what to do next. Without a clear-cut way of securing compensation, you may start to worry about your ability to secure payment. We always recommend that our clients try the easiest and most simple alternatives before turning to more cumbersome and expensive methods. One such alternative means of receiving compensation is delivering a formal demand letter to the non-paying party.

Here we explain the basics of a demand letter.

“What’s Love Got to Do With It?”

Simply put, a demand letter should let the other party know that this is business. And in business, you need to get paid. A good demand letter, though cordial and polite, should be extremely clear about your serious intention to collect compensation. It should be short, to the point and clear about your request. Though the demand letter should command respect, it should also avoid personal attacks on the non-paying party. Because it is always better to leave anger and disparagement out of the demand equation, avoid unnecessarily harsh or inappropriate language.

What to Consider

Before writing a good demand letter, you should ask yourself the following important questions:

1. What do we both want?

2. What are the risks for both parties?

3. How much time will this take?

4. Are there any statutes or contractual provisions that require a demand be sent?

By knowing the answer to these basic questions, you can better organize and structure your demand letter.

The Formula to a Successful Demand Letter

There are some important components of a good demand letter. Firstly, you need to provide a brief chronological overview of the relevant facts of the dispute. Even if the other party knows these facts, it is important to identify them here in case a judge our court ever reads this letter in the future.

You may also want to identify the potential risks of non-payment, especially the costs associated with lengthy litigation. Make your demand letter look professional and specify the resolution that will satisfy your needs. By being clear about the facts and the consequences, you can help ensure that the other party is too. Additionally, if you and the debtor are bound by a contract and a “notice” is required beforehand, make sure the demand letter conforms to the notice requirement.

Lastly, an experienced attorney should help your formulate your demands and draft your letter in a cohesive and legally significant manner. If you have questions about or want to draft a demand letter, contact the attorneys at Wolfe Law today. With years of experience in drafting demand letters, our attorneys can help make sure you receive the compensation you deserve without rushing to court.

You have been hired to perform a job for a new customer. After negotiating a deal that you are both happy with, you signed your name on the dotted line.You may have even started performing work for the other party.If so, you have already incurred some expenses and have likely not yet seen much compensation for it.Perhaps, you have even fully completed the job at hand.

Thus far, all seemed to be going ok, until suddenly, the customer went back on his promise. The deal you had entered into has now been broken. If you find yourself here, you might be facing a breach of contract and there are some important steps you need to take to ensure you are protected.

Here are the first three steps to consider if you think your contract has been breached:

1. Don’t Panic

A breach of contract may be a frustrating occurrence. It may even be an expensive and burdensome one. It is usually not, however, an irreversible one. Meaning, you have legal rights that are well-protected and with the proper legal guidance, you may quickly be on your way to relief. Though amicable negotiations are always advisable, make sure to never engage in hostile or aggressive communication.The court system is there to help you deal with the adversarial nature of such a conflict. In fact, a breach of contract is one of the most common causes of lawsuits nowadays. Don’t engage in angry personal interactions.

2. Know Some Stuff

We always advise our clients to familiarize themselves with some basic legal terminology as vocabulary can be on of your best tools. Breach of contract, for example, is simply a broken contract resulting from the unjustifiable failure of one or more parties to complete the terms of their contractual obligations. It may range from a minor breach to a material one. A breach of contract may occur when a painter refuses to complete the job, a delivery is only partially fulfilled, or when a client refuses to pay the agreed upon compensation.

As a result of the breach, you may be entitled to damages, or monetary relief, which is the typical remedy awarded as compensation for your loss. Though far less typical, a court may also order specific performance, which would require the person or business to perform his initial duties as stipulated under the contract.

3. Get Representation

Though you should be as well versed in the legal framework of your contract as possible, the right legal team is an invaluable asset in this sort of situation. In addition to time limitations for your claim, you may face procedural and logistical hurdles on your way to relief.

Here at Wolfe Law, we have tremendous experience in helping clients pursue their legal rights regarding breach of contract.Contact us today for all your contract questions.

If you were injured at work, you may be asking some of the following questions:

• Is my employer responsible for my injury?

• What fault do I need to prove?

• What are my next steps?

These are all good questions and ones that we frequently help our clients address. Here we discuss some of your biggest and most basic concerns.

Employer’s Responsibility

Your employer has a legal duty to protect his employees, contractors, and even visitors from accidents or injuries in the workplace.Though certain jobs lend themselves to more injuries than others, an employer must take reasonable care in order to maintain safe working conditions and/or let you know of potential hazards.This obligation may require an employer to maintain proper facilities and provide necessary tools for you to perform your job safely. An employer may also have a legal duty to report certain incidents and give you time off after a workplace accident.

Where the Fault Lies

In order to receive compensation, injury itself is ordinarily not enough. You may also need to prove that somebody was at least partially at fault for the injury. Louisiana is a “no fault” state when it comes to being injured on the job, so your Workers Compensation claim will be limited by this law. However, if you can prove that either somebody acted negligently or intentionally wrongfully, then you maybe able to bring a parallel action to recover more than what the Workers Compensation laws allow.Louisiana follows a “comparative fault” rule, which reduces your damages in proportion to the amount of fault assigned to you for your injury.Thus, if you are found to be 20% at fault for your injury, your compensatory damages will be reduced by this amount.

Next Steps

Each personal injury claim is different and we strongly recommend consulting with an experienced attorney to help determine the relative strength of your claim. In the meantime, however, we encourage you to keep a record of all relevant facts and data to your claim. Take pictures of any hazardous conditions and save any evidentiary significant items. Review your contract to determine whether you are entitled to any special time off or compensation. Also keep in mind that there is a statute of limitations, or deadline, on the amount of time that you will have to file your personal injury claim. Under Louisiana law, you generally have one year after the date of the accident to file your claim in court.With all these factors to consider, having the right legal team behind you can make all the difference for your personal injury claim. At Wolfe Law, we have been helping clients get compensated for their injuries. Call us today for all your personal injury needs.

Jessica Kane is a professional blogger who writes for Federal Steel Supply, Inc., a leading supplier of carbon, alloy and stainless steel in pipe, tube, fittings and flanges.

The construction industry has a bright future. In the next 50 years, there will be more jobs and new techniques that suit people who have specific preferences at construction sites.

New Construction Technology

Because there are new technologies at the Harvard School of Engineering and Applied Sciences, robots may tackle various construction projects in the future. The students at the school have developed bots that look like termites. These bots can build many small buildings without any supervision. According to industry experts, construction companies will only use these bots during dangerous or risky building projects.

Eco-Friendly Building Materials

Many construction businesses will buy self-healing concrete 50 years from now. Eric Schlangen and Henk Jokers developed this concrete by mixing various spores together. After the nutrients are activated in water, the spores consume calcium lactate and produce lactite. If self-healing concrete continues to evolve, construction workers will use it to eliminate cracks and costly maintenance.

Builders will also use better sustainable materials during the construction phase. A few companies are already using foam material that is made from bamboo, kelp, or hemp. Foam has good moisture properties and solid heat resistance, so mold never grows on the surfaces.

New Design Opportunities

Although many businesses may still use familiar construction techniques, innovative construction methods will dominate the industry in the future.

There is a company in Indonesia that has a design for a 99-story building that looks like various flower petals. Thanks to its unique design, the structure will harness energy from the wind by funneling air currents into different energy sources. In addition, the team will place solar panels in a number of locations to reduce carbon dioxide emissions.

Another construction company plans to build a skyscraper out of trash. The Organic London Skyscraper has durable panels because the builders will combine discarded paper with plastic waste.

Drones

According to Colin Guinn of 3-D Robotics, drones will help engineers and architects tackle various construction tasks more accurately. Drones are already building structures in Switzerland; the Swiss Federal Institute of Technology developed bots that have the ability to construct rope bridges.

In the future, construction workers will use drones to view structures at a high level. Because the bots can fly to different locations, builders can increase their workflow visibility dramatically.

3-D Printing

Currently, many industries are using 3-D printing to make small structures. However, future 3-D technologies will help workers create materials directly at the construction site.

3-D printing is very useful during the collaboration process because it helps designers make better decisions. Design teams will use the technology when they plan and sequence advanced assemblies.

Construction companies that use 3-D printers today mainly print concrete materials. The technology is not every efficient because it prints concrete slowly. However, over the next few years, the machinery will print concrete within hours instead of weeks.

As the technology evolves, more construction companies will use 3-D to build houses. The homes will be built fast because the 3-D houses use less materials than traditional homes.

Sammy Blackmore is currently a writer for Membrey’s Transport and Crane Hire. She is an avid truck and engine fan and shows her passion through her writing. In this article, she talks about the key things a crane hire company should offer.

The construction industry is a constantly growing one. With newer advancements in mechanics and technology, companies are able to offer more robust and efficient service. Cranes are a favourite among contractors. This heavy duty equipment is used almost always as it focuses on transporting materials from one place to another. Humans can physically do the task themselves but it can be taxing and requires a longer turnaround time. Likewise, the materials are also at risk of wear and tear when handled by humans.

Crane hire companies are companies that offer the lease of cranes as their main service. This service realizes tons of benefits for the customer like customizable lease periods, adherence to construction legislation and the like. These are further detailed below.

Flexible and Stackable Lease

Need a crane for only a day? Go right ahead. Even if you find out later that you need it for an additional two days, the crane hire company will be more than happy to extend your lease. You can rent a crane anywhere from one day to several months. Likewise, if the need arises to two or more cranes, the company will also be able to accommodate.

No Legislation Worries

Just like purchasing your own vehicle, owning a crane also warrants several licenses and permits. Also, there may be times when you need to coordinate with the proper authorities when you are transporting things. This can be troublesome especially if you aren’t planning on using the crane regularly. If this is so, you should opt to rent instead as crane hire companies.

Different Cranes at your Disposal

Cranes have various attributes. If you don’t know exactly what you need, the company will be able to help. They have all sorts of cranes you can choose from. The length of the boom, the radius of rotation and the carrying capacity are all crucial in determining what type of lift you need. The company can also send you further information and crane specifications should you need them before availing of the service. This should help in the decision making process.

Safety

Crane hire companies are experienced in their field. Due to their regular exposure to workplace hazards, they have best practices in place to help you maximize the service without putting anybody at risk.

Competitive Pricing

There are tons of crane hire companies out there. Even if they are in a different part of the country, they will most likely service all regions on the same continent. Due to this, pricing is extremely competitive. What you want is a service that is priced justly and also offers decent customer support and timely delivery.

Image Sources: [1] [2] [3] [4] [5] [6] [7]

Author: Sammy Blackmore

Construction Management – Truck Fan – Content Curator

e: Sammy@SammyBlackmore.com| w: http://sammyblackmore.com/

a: Australia Port Melbourne, VIC 3207

Getting construction bonds is not as scary and difficult as some think

If you are a contractor working on public projects, you’ve most likely heard a lot of myths about construction bonds.

Common misconceptions range from the idea that surety bonds are unaffordable to questioning whether they are necessary at all. Due to this misinformation, many contractors either avoid projects requiring bonds, thus missing great work opportunities; or sometimes even operate without them, which jeopardizes their legal standing and puts their whole company at risk.

For the sake of clarity, let’s bust a few of those myths, so that you can conduct your business with the truth in your toolbox.

Myth #1: Construction Bonds Are Very Costly

Probably the most widely spread misconception about contractor bonds is that they are too expensive, and thus out of reach for many small-scale contractors. The reality is quite different, though. The contractor often does not pay anything in the end.

The bond price is usually somewhere between 1% and 3% of the contract sum. However, the contractor needs to pay the bond premium after she actually wins the bid. If bonding is needed for the project, all applying contractors face the same requirement, but only the winning bidder will pay the payment and performance bonds. In most cases, the obligee on the contract, the owner of the project, reimburses the bond price with the first payment towards the contractor.

Myth #2: No Surety Bonds Are Needed by Large Construction Companies

This misconception is based on the idea that big players in the construction field are immune from failure, so they should not and do not obtain construction bonds. While it might be surprising to some, this is not true. Large construction companies can and do have financial problems or suffer from mismanagement and improper financial handling.

A recent case of this is the bankruptcy of the 105-year-old company Truland Group Inc., Washington, D.C.’s largest electrical contractor. Truland had been in turmoil for months if not years prior to its shutdown, and while there were many indications of problems, the end was still unexpected. Currently, the company that provided bonding to Truland, XL Specialty Insurance Co., could be forced to cover more than $35.6 million because of claims from suppliers and subcontractors.

Truland is not the only large company that met this unexpected end. The same thing happened to industry giants Morrison Knudsen, Modern Continental, or Ballenger. It’s easy to see that without the required bonding, there would be nobody to pay to affected parties and to cover the risk in such situations.

Myth #3: Surety Companies Never Have Losses

One might assume that surety companies never pay for anything, as the contractors for which they underwrite bonds have to cover the bill at the end. However, this isn’t always the case.

For example, between 2002 and 2013, sureties have covered more than $13 billion in claims, which do not include additional claim expenses that also go in the billions. The above-mentioned case of Truland is a good illustration of that. In the event of bankruptcies and pending claims, there is nobody else but the surety provider to cover the costs.

There are additional hidden costs that surety companies also cover. Sometimes they finance contractors through tough times, especially if they have a well-built long-term relationship. They can also help negotiations in case of conflicts, which saves money for contractors but of course means expenses for sureties in terms of time and engagement.

Myth #4: All Sureties Are Created Equal

Sadly, not all surety bond companies are the same. Even if a name sounds familiar, if you haven’t used their services you cannot be sure that all will go smoothly during your bonding.

That’s why verifying the surety is an essential step when obtaining bonding for a project. The National Association of Surety Bond Producers recommends to follow a two-step authentication process when choosing a surety. First, check the authority of the surety to issue the bond. Your state insurance department can provide the information on whether the surety is within the appropriate project jurisdiction. You also need to check whether the surety you’ve chosen is included in the U.S. Department of the Treasury Listing of Approved Sureties. If the company covers both points, it’s safe to use its services.

The final step to check your bonding is to inquire directly from the surety company whether your surety bond has been authorized. You can find further information and surety companies’ contacts in the Surety and Fidelity Association of America Bond Obligee Guide. Once you’ve verified this has been done, you can be sure that your bonding is complete and secure.

Myth #5: Other Insurance Products Can Do the Job, Too

If you’ve heard that a letter of credit or Subcontractor Default Insurance (SDI) are alternatives to bonding, this is a myth that urgently needs busting. No other product gives the same level of complete protection as surety bonds do.

A letter of credit secures a part of the contract amount in cash in case the contractor defaults. However, there is no overview whether the contract is being strictly and fully completed, which sureties do provide. Reimbursement of subcontractors, employees, and suppliers is also not considered.

SDI is also not an option equal to bonding. It’s actually much closer to regular insurance because the insured entity is the contractor and not the owner of the project or the subcontractors and suppliers, who are most affected in cases of default or bankruptcy. SDI is also not ideal for contractors themselves, as they have to cover all losses at first, and then to get reimbursement from the insurance. This puts their finances in great jeopardy and makes them often unable to repay all due costs to other affected parties. It’s clear that bonding remains as the most effective and comprehensive security method, after all.

These are the five most common misconceptions about construction bonds that we thought you’d find relevant for your contractor business.

Have you heard any other myths about contract bonds? We’ll be happy to discuss details about them in the comments section below.

Written by Vic Lance

Vic Lance is the founder and president of Lance Surety Bond Associates. He is a surety bond expert who helps contractors get licensed and bonded. Vic graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan’s Ross School of Business.

A mechanic’s lien is a last-resort measure used by construction procurers to obtain payment withheld by a client. In this day and age, however, many clients harbor valid concerns about fraudulent liens, especially considering Louisiana’s loose requirements for filing a mechanic’s lien. Whether you’re a contractor, supplier or equipment lessor, a mechanic’s lien waiver is an effective way to protect your clients from fraudulent liens.

Basic Types of Lien Waivers

A lien waiver is a document stating that you waive your right to any future liens against your client’s property. Depending on the type of waiver, it is furnished either prior to receiving payment or afterward. Four factors combine in different configurations to create the type of lien waiver necessary for any given situation, and they are:

1.Conditional;

2.Unconditional;

3.Progress payment; or

4.Final payment.

Conditional Waiver Upon Progress Payment

A conditional waiver upon progress payment is usually attached to a mid-project invoice and stipulates that you waive your right to any future liens on the client’s property up to a certain date if you receive and process payment on it. It excludes returned or stopped payment checks. This type of waiver is the safest for you as the procurer.

Unconditional Waiver Upon Progress Payment

An unconditional waiver upon progress payment is issued after receiving and processing a mid-project payment, and states that you waive your right to any future liens on the client’s property through a specified date. It excludes returned or stopped payment checks.

Conditional Waiver Upon Final Payment

A conditional waiver upon final payment is usually attached to a final invoice and stipulates that you waive your right to any future liens against the client’s property if you receive and process payment on it. It excludes returned or stopped payment checks.

Unconditional Waiver Upon Final Payment

An unconditional waiver upon final payment is issued after receiving and processing the final payment, and states that you waive your right to any future liens against the client’s property regardless of whether the payment check has been returned or payment stopped. This is the safest type of waiver for the client.

With a lien waiver, you aren’t just building a structure—you’re building trust. Let the attorneys at Wolfe Law help you secure that trust with a lien waiver that works for you.

Image Credit: Anders Adermark, flickr

“Most of the time, when a public project goes well, no one notices. Few taxpayers will think anything of uninterrupted miles of working power lines, or an extremely competent drainage system.

However, when a public works project goes over budget, it can mean thousands of angry constituents and big sums of money to answer for. In the extreme worst cases, a well-intentioned infrastructure project can become a wildly over-budget public controversy (like Boston’s Big Dig), or a politically radioactive debacle that’s talked about nationwide (like Alaska’s infamous “Bridge to Nowhere“).

The world of public contracting is quite complex because at stake are a lot of taxpayer dollars, with figures sometimes in the billions. In order to compete for these jobs, contractors will have to take out contract surety bonds. Two types of contract bonds which you’ll need for this work are performance and payment bonds. Here’s a quick introduction to what they are, and how they differ.

Contract Bonds

When a government on the federal, state, or municipal level needs to build a civilian project, it will hire an outside agency. Once the agency has been chosen, they receive what’s called a public contract for that job, which is legally defined as an agreement to construct or repair a structure or road with public money. In order to increase accountability, public contracts are legally enforceable.

Due to the stakes involved, public agencies that award contracts require a bond before a job begins. As with other bonds, these bonds exist to protect the public from malfeasance, or in case the bonded party can’t fulfill their obligations. Typically, public jobs require both performance and payment bonds that go together for a single job. They are referred to often when discussing construction, but they are two separate bonds that cover different things:

1. Performance Bonds

While the payment bond makes sure that workers get paid, the job still needs to get done. A performance bond is taken out to guarantee that the contractor will complete the job as laid out in the contract. If the contractor doesn’t finish the projects as agreed in the contract or walks out of the project before it is finished, a claim can be filed against them. The bond is required by the Miller Act, passed in 1935, as the federal government was looking for ways to improve the quality of the work done on public projects.

2. Payment Bonds

There is a lot that goes into a construction job, and a payment bond covers, naturally, payment. A payment bond ensures that everyone gets paid the wage to which they’re entitled. A payment bond is taken out for the full amount to guarantee that the contractor will pay their employees and subcontractors. The good news is that the price of the performance and payment bond can be listed as part of your proposal, so in effect, you won’t pay for them.

Though the world of contract bonds can be complex, the lucrative nature of public contracts makes this work an attractive option. In addition to the income itself, Those working on public contracts can also know that they are working to improve communities. Have you found success in the world of public contracting? Let us know in the comments below.”

Written by Lorenzo Estébanez

Lorenzo Estébanez writes about surety bonds, with a focus on the process of obtaining bonds and getting licensed. He is a regular contributor for the Bryant Surety Bonds blog.

Components of an Attorney Letter

An attorney letter can be either a simple one page letter demanding amounts owed or it can be a multi-page document containing legal authority, legal argument and voluminous exhibits. Typically the more time and effort spent on the letter will determine the costs, but that is not necessarily indicative of the outcome: to get paid.

The attorney letter must be written on attorney letterhead and contain the signature of a licensed attorney, in order to have maximum effectiveness. Its better when the parties, amount in disputes and other important facts are put in the “regarding” section before the narrative begins.

The narrative or body will contain who the attorney represents, the amount in demand, many times the location of the dispute or accident and the legal support as to why the attorney’s client (represented party) is entitled to the the funds or specific performance demanded.

Many attorneys will attach contracts, invoices, pictures, other correspondence, and other supporting documents to the demand letter in order to bolster its strength. Further, many of these letters are used later on if the dispute does not resolve.

Strengths of an Attorney Letter

There are many aspects as to why a person or company should send an attorney letter. Many times a contract or statute require such a letter be sent in order to preserve or effectuate certain rights. Other times a statute may require written demand be sent before rights such as attorney fees and costs, mature. A perfect example is the Louisiana Open Account Statute, La R.S. 9:2781:

“When any person fails to pay an open account within thirty days after the claimant sends written demand therefor correctly setting forth the amount owed, that person shall be liable to the claimant for reasonable attorney fees for the prosecution and collection of such claim when judgment on the claim is rendered in favor of the claimant.” La R.S. 9:2781.

Here, an open account claimant can be awarded attorneys fees if written demand is sent and the claimant waits thirty (30) days before prosecuting. Recouping of attorneys fees can make or break whether a claimant chooses to go after a bad debt.

There are a number of examples like this in Louisiana law and in contracts between parties that make attorney letters even more powerful.

Circumstances to use and an Attorney Letter

Sending an attorney letter is a strategic move and the consequences of sending such a letter should be contemplated ahead of time. Attorney letters do not always have to demand money. Sometimes parties can send attorney letters to lay out a dispute or certain rights that the claimant is entitled to.

Other circumstances where attorney letters are used is in response to a demand of some time. My Construction clients often get letters or other notices stating that my client needs to do something related to a contractual provision.

Many times a general contractor will order a subcontractor to do some type of work that the sub does not consider part of his scope of work. At this juncture the sub can either do the work or risk the possibility of default. A response with a well thought out attorney letter will often let the general contractor know that this subcontractor will not be easily pushed around.

As stated above, the complexity of an attorney letter can vary. Nevertheless, the effectiveness of the letter is the same. The outward look of your company is also changed, letting potential adversaries know that your company is prepared and informed of its rights.

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The construction industry, just as any other industry has its own terminology or lingo. There are many examples such as “punch-list,” “lien” and “substantial completion” to name a few. No words are more dreaded than change order. Construction change orders are some of the most litigated and disputed documents in all of construction law.

A cousin of the change order, is the construction change directive. Although the names are similar the legal implications are significantly different. The construction change directive may be even more disputed than the construction change order but it is not as widely used. This post will help to familiarize readers with what exactly a construction change directive entails.

Definition of Construction Change Directive

I found a quick definition of construction change directive:

An alternate mechanism for directing the contractor to perform additional work to the contract when time and/or cost of the work is not in agreement between the owner and contractor performing the work.

at DictionaryOfConstruction.com.

To break down this definition, one must look to its parts. First, its an alternative mechanism, meaning that there are other way to accomplish the goal of the owner/architect. Second, it directs the “contractor” to perform additional work. Its not a request but rather a directive. Lastly, its a directive given by the owner when time and/or cost are not in agreement. This is vastly different from the change order, which has to be agreed to by the contractor and owner.

Basically this is an order to do something even though there is no agreement as to timing and/or price. This type of authoritarian mechanism is prone for heavy dispute.

Application of the Construction Change Directive

The application of the construction change directive is less complicated than its definition. The AIA G714 is a single page document that basically has four sections.

1. A section containing all of the project information which is standard on any contract document which includes a brief description of the change that is being directed;
2. The proposed adjustment with regards to price;
3. The proposed adjustment with regards to time; and
4. The signature blocks for the Architect, Owner (required) and Contractor (no signature required for contractor).

Once this document is filled out and signed by the owner and architect, it needs delivery to the contractor for effectiveness. This is a bold and powerful document.

Construction Change Directive: Risks and Rewards

As with any document, whether it be an agreed upon change order or a construction change directive, there are inherent risks involved with taking on new work. The owner has to weigh the risks and rewards with taking such bold move in order to get what it wants. This move could backfire and be costly for the owner and/or negate any damages for delay that the owner may have against the general contractor because of the forced additional work.

Its important to speak with an experienced attorney when dealing with complex procedures on a construction project. Click here or call 504-894-9653 for more information.

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