The construction industry is a leading target of cyber crime. According to cybersecurity firms, one in every 382 e-mails in the construction industry contains malicious content, and nearly forty percent of construction industry employees are considered susceptible to cyber scams. Given that cyber crime will only get more sophisticated and difficult to detect, failing to implement a cybersecurity plan is a serious gamble. According to the National Cyber Security Alliance, 60% of small businesses survive less than six months following a data breach. However, contractors can improve those odds by increasing security measures, training employees, and purchasing cyber insurance policies. Furthermore, contractors without cybersecurity plans may fall behind competitors and fail to qualify for certain jobs, especially government projects.
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As of August 20, 2019, no contract for commercial construction may have retainage over 10%; and contracts that are more than 50% complete must reduce retainage to 5%.
In 2016, bad things happened to the lien rights of subcontractors and suppliers in Missouri because of a bad court decision. Then in 2019, American Subcontractors Association (ASA) and its industry partners made good things happen in the legislature with the passage of a favorable law to overcome the bad court decision. The problem started when the Supreme Court of Missouri unexpectedly ruled that a subcontractor had neither a bond claim nor a mechanic’s lien claim against the real estate owned by a county but leased by it to a private entity to be used by that entity as its corporate headquarters.
HB2838, which would have made primary contractors jointly liable for the wages & benefits of their subcontractor’s employees, even if the primary contractor had paid the subcontractor in full, has been held from consideration in the Illinois State Senate in the final days of spring session. Senate Bill Sponsor, Laura Fine (D-Glenview) sent word on May 30th to all stakeholders of HB2838 that an amendment would be filed that would remove some of the controversial issues supported by the Carpenters Unions and the American Federation of Labor and Congress of Industrial Organization (AFL-CIO),
Construction business owners know the construction field has more than its fair share of liability risk. Prudence dictates an occasional review of the obvious in monitoring and managing a construction business, in order to make sure basic liability protections are in place to minimize the inherent risks. Owners’ personal assets will be exposed to risks in the construction business unless the business is operated as either a corporation, which can be a C corporation or S corporation for tax purposes, validly formed and in good standing under state law, or a limited liability company (LLC), which can be a disregarded entity if one member or owner, C corporation or partnership for tax purposes.