Sub left holding empty bag: No lien, no bond claim, big problem

Subcontractors are accustomed to believing their payments are secured by either a mechanic’s lien or a payment bond, sometimes both. For example, when the public utility, AmerenUE, convinced the Missouri Court of Appeals that due to its quasi-governmental status, it should be immune from mechanic’s liens, the court went on to say that AmerenUE would…

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Mechanic’s Liens and Bankruptcy: Can You Still File a Mechanic’s Lien after a Bankruptcy has Been Filed?

The answer is yes, if your state mechanic’s lien laws provide that the lien “relates back” to a time before the bankruptcy case was filed. However, if you are in a state where your mechanic’s lien does not relate back, the automatic stay prevents you from filing your mechanic’s lien and may void your mechanic’s…

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Certification – Have you thought about the future?

There are three main types of enterprise certifications for businesses: Women-Owned Business Enterprise (“WBE”), Minority-Owned Business Enterprise (“MBE”) and Disadvantaged Business Enterprise (“DBE”). To obtain certification, the ownership, management, and control must be at least 51% women, minority or disadvantaged, depending on which certification you are obtaining. As those who are certified know, these certifications…

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Government impliedly warrants that its detailed plans and specifications are free from defects; contractor may use modified total cost method to determine damages in breach of contract claim

In a recent case decided by the Missouri Court of Appeals, Penzel Construction Company, Inc. v. Jackson R-2 School District, etal (Penzel) ED103878. mo, the Court applied the Spearin Doctrine (US v. Spearin) where the US Supreme Court held that the government offered an implied warranty to the contractor that its plans would be adequate…

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I’m a subcontractor, material supplier, or design professional – I don’t need to worry about the implied warranty of habitability – Right?

While the implied warranty of habitability has been a concern to homebuilders, since it was first recognized by the courts, subcontractors need to be concerned with the effect of the warranty, as well.  In a recent case brought by the Sienna Court Condominium Association in Evanston, Illinois, the 1st District Appellate Court addressed the holdings…

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I’m a contractor. Why should I care about the Missouri Commercial Receivership Act?

What is a receivership? In its basic form a receivership occurs when a creditor requests the court to appoint a third party to take control of a debtor’s assets during the course of some litigation.  This may include taking control of business operations, managing personnel, acting upon or rescinding business contracts, or liquidating the debtor’s…

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Contractor – Know Thyself

It is good to occasionally to review our basic business processes. For our construction clients, one of these processes to involve in a periodic review and renewed staff training pertaining to preparation and monitoring of construction contracts.  More specifically, it involves an awareness of a company’s status as a specific type of contractor for purposes…

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So you love your construction lawyer?

Yes I know that all the surveys rate lawyers only slightly higher than dog catchers but that is referring to the other guy’s lawyer, not your own. You have a great lawyer and good friend who understands your business and your challenges and today you just got sued and you want your lawyer friend to…

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