Construction Blog

Given the negative impact on development that a new tax the Tax Cut and Jobs Act of 2017 placed on contributed utility infrastructure, the staff of the Missouri Public Service Commission is holding a workshop to address the tax, on July 19th, starting at 10 a.m. at Room 450 in the Governor's Office Building, 200 Madison Street, Jefferson City, MO 65102. It is important that all aspects of the development and building industry in Missouri be represented. Developers, builders, contractors, and subcontractors are encouraged to attend.

It has long been established law in Missouri that subcontractors, under certain circumstances, may enforce mechanics’ liens against the owner’s interest in a shopping center (or other real estate leased to tenants) even where the prime contract is between the tenant and a general contractor, not the owner of the real estate. However, this well established body of law was temporarily upset when a St. Louis County Court ruled that two subcontractors who worked for the general contractor on the build-out of an Allen Edmonds Shoe Store (tenant) at Plaza Frontenac did not have mechanic’s lien rights. The two subcontractors, Crafton Contracting Co. (demo, framework, drywall and carpentry for $67,000) and Vogel Sheet Metal & Heating (HVAC for $16,000) filed liens because the general contractor, Swenson Construction, did not pay them, even though Swenson was paid by Allen Edmonds. (Failing to pay its subcontractors, was not enough to prevent Swenson from going out of business.)