A couple of times a year I provide an update to the construction community on the time frames associated with filing a mechanic’s lien and pursuing various claims. There are serious misunderstandings when it comes to the correct time frames. Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing […]

As my readers know, there are two types of construction Mechanic’s Liens, private improvement and public improvement. In a private improvement lien the owner’s property is placed in jeopardy. When a mechanic’s lien is filed, it attaches to the owner’s property. The owner cannot sell, refinance, leverage or dispose of the property without addressing the […]

Over the years, I have written many articles about how egregious arbitration is in the construction community. Every contract which contains an arbitration clause should have the clause stricken before the contract is executed. The reasons for that, from a legal point of view, are that you are subject to the whims and idiosyncrasies of […]

When bidding work within the public sector, there are numerous requirements that must be met before a contract is officially awarded.  When a contractor is the lowest bidder, it is not necessarily the winning bidder.  There are other responsibilities and obligations that the contractor must comply with under the terms of the bid in order […]

An endorsement might limit liability and protect only those who have a contractual obligation with the named insured.

In the past, I wrote articles pertaining to lien waivers. I emphasized the importance of the lien waiver and the various ramifications associated with it.  I advised each of you that when a lien waiver states “Full and Final Waiver of Lien” it is considered a release and prevents any future claim by the subcontractor […]

Recently, contractors have reached out to us to pursue various claims on their behalf arising out of work performed or materials furnished on a project. One of the many questions that are asked is whether they can recover interest on the amount due. New York State permits interest on all claims to be calculated at […]

As I have mentioned in the past, it is very easy for a contractor or a subcontractor to file a mechanic’s lien. The lienor can pay the appropriate fee and slap a lien on a building even though he may not be owed any money. It is much more difficult for the owner to remove […]

Over the years, I have written many articles about how egregious arbitration is in the construction community. Every contract which contains an arbitration clause should have the clause stricken before the contract is executed. The reasons for that, from a legal point of view, are that you are subject to the whims and idiosyncrasies of […]

A couple of times a year I provide an update to the construction community on the time frames associated with filing a mechanic’s lien and pursuing various claims. There are serious misunderstandings when it comes to the correct time frames. Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing […]

In addition to the services we perform for lienors, we also get multiple calls from general contractors, subcontractors, owners, etc., disputing claims and requesting guidance as to how to remove a mechanic’s lien filed by someone else. There are multiple ways in which a mechanic’s lien could be discharged or vacated. A mechanic’s lien is […]

There is a lot of confusion and misunderstandings when it comes to recouping legal fees in litigation. Clients regularly ask whether they can recover the legal fees associated with their litigation. The response I give them is almost always no. Legal fees are recoverable in litigation if there is a particular statute which is being […]

Over the years, contractors have reached out to us to inquire as to whether they can pursue a claim even if they did not file a Mechanic’s Lien. The obvious answer to that question is yes. Many people are confused about their legal rights. Some contractors believe that the failure to file a Mechanic’s Lien […]

We all know that a major problem in the construction industry is payment. A developer or owner wants his building constructed expeditiously, and in return, the contractor wants his requisitions paid equally expeditiously. The owner or developer gets what he wants but tries to delay his responsibility for payment to avoid calling down on construction […]

When you are involved in any type of lawsuit there is no guarantee that you will be able to establish your claim. This applies whether you are suing somebody or somebody is suing you. There is never a guarantee about the outcome of any piece of litigation. Every judge will tell you that it is […]

In addition to the services we perform for lienors, we also get multiple calls from general contractors, subcontractors, owners, etc., disputing claims and requesting guidance as to how to remove a mechanic’s lien filed by someone else. There are multiple ways in which a mechanic’s lien could be discharged or vacated. A mechanic’s lien is […]

Most contracts between an owner and a contractor or a contractor and a subcontractor contain a set price. Occasionally, a contract is based solely on unit prices or time and material. This article will address a contract for a set price. The construction industry is presently threatened with increases in costs for concrete, gypsum, lumber […]

We all know that a major problem in the construction industry is payment. A developer or owner wants their building constructed quickly, and in return, the contractor expects timely payment. The developer gets what they want—but often delays payment to avoid drawing on construction loans, paying interest, or simply to pressure the contractor into accepting […]

There is no question that the law is well settled and established that the only time a subcontractor’s lien is valid is if there is a balance running from the owner to the General Contractor. If you have new construction, you may have a building loan and the proceeds of that loan may be split […]

Every month I write articles indicating the importance of filing a mechanic’s lien to protect your interests. If done properly, the filing of a mechanic’s lien can be a beneficial tool in collecting payment. The ability to protect your receivable by maintaining a secured interest in the real estate should not be overlooked. If after […]

Almost all public projects require payment and performance bonds. Many large private projects also require payment and performance bonds. I have written various articles about the time restraints associated with claims under each of the bonds. This article, however, will address the rights of the surety company in any claim brought against it. A payment […]

In the event you are performing work for an out-of-state general contractor or owner, there is a strong likelihood that there is a Forum Selection Clause in your Agreement. A Forum Selection Clause determines a location where a lawsuit should be brought in the event a dispute occurs between you and the contractor or owner. […]

When you are involved in a lawsuit there is no guarantee that you will be able to establish your full claim. This fact applies whether you are suing somebody or somebody is suing you. There is never a guarantee about the outcome of a piece of litigation. How a court or jury views the witnesses, […]

There has been a lot of litigation over the years pertaining to subcontractors claims and the obligation of the owner to pay for work performed and materials furnished on the Project. A Mechanic’s Lien allows a subcontractor to pursue a claim directly against the general contractor and the owner. While the subcontractor may not have […]

The concept behind a Mechanic’s Lien is that the materials and labor must be done for the construction and improvement of a particular piece of property. This means that you cannot deliver your materials and do your work at “Project A” and lien “Project “B”. Your materials and labor must be identified as going into […]

A couple of times a year I provide an update to the construction community on the time frames associated with filing a mechanic’s lien and pursuing various claims. There are serious misunderstandings when it comes to the correct time frames. Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing […]

Over the years, I have written numerous articles about the pay-when-paid clauses that are regularly incorporated into construction contracts. Until 1995, the pay-when-paid clause was enforceable and prevented subcontractors from receiving payment if the general contractor did not receive payment from the owner. In 1995, the Court of Appeals, the highest Court in New York, […]

Many of the articles I have written in the past pertain to public projects and the ruthless clauses that appear in the contracts. A recent decision from the Appellate Court reaffirms the harsh consequences when a contractor fails to comply with specific terms of a public contract. The facts of the case are as follows: […]

Many contractors perform work for condominiums. The contractor is hired by the Board of Managers or a General Contractor to perform work throughout the common elements in the building. Beware, the Lien Law, as well as the Real Property Law, do not protect the contractors sufficiently in order to secure payment. Under ordinary circumstances, a […]

The provisions of substantial completion in any contract carry with it major ramifications. Yet, it is rarely understood and often glossed over superficially. By usual definition, if the project can be used for its intended purpose, in spite of the defects and open items or punchlists, then substantial completion may exist. The date of substantial […]

Over the years, I have written many articles about how egregious arbitration is in the construction community. Every contract which contains an arbitration clause should have the clause stricken before the contract is executed. The reasons for that, from a legal point of view, are that you are subject to the whims and idiosyncrasies of […]

Almost every project has an architect preparing the plans and reviewing the work. Sometimes the architect maintains a limited role in a project and is hired to only to draw up the plans. Other times, the architect takes a more aggressive approach on a project and is involved in the day-to-day aspects of the project, […]

Every month I write articles indicating the importance of filing a mechanic’s lien to protect your interests. If done properly, the filing of a mechanic’s lien can be a beneficial tool in collecting payment. The ability to protect your receivable by maintaining a secured interest in the real estate should not be overlooked. If after […]

There has been a lot of litigation over the years pertaining to subcontractors claims and the obligation of the owner to pay for work performed and materials furnished on the Project. A Mechanic’s Lien allows a subcontractor to pursue a claim directly against the general contractor and the owner. While the subcontractor may not have […]

Once again, clients have requested that I post the time frames associated with filing liens. Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing a mechanic’s lien. Every contractor, subcontractor, and supplier should know the correct time frames in order to properly protect their receivables. I cannot emphasize enough […]

Over the years, I have emphasized the importance of filing a mechanic’s lien. Many times it is the difference between getting paid and not getting paid. As all of you know, a mechanic’s lien can be filed after you perform the work or furnish the materials. Once a lien is filed, it is extremely difficult […]

A contractor, subcontractor or materialman that has a contract with a tenant could maintain a valid mechanic’s lien against the owner’s interest ONLY if the improvements made were with the consent or approval of the owner. New York Courts have stated that consent of the owner requires an affirmative act and not just mere acquiescence. […]

It has to be made crystal clear that the failure to prove everything in a Mechanic’s Lien does not necessarily mean that the Mechanic’s Lien is exaggerated. An exaggeration exists when someone deliberately and intentionally increases the amount due. The classic case involved an exaggerated lien which was a small matter where somebody was greedy […]

In 1995, the Court of Appeals, New York’s highest court, found that paid when paid clauses violated New York’s public policy and were unenforceable. In 2006, the Court of Appeals rendered another decision with reference to a “pay if paid” clause. In that case, the plaintiff, a subcontractor was hired by a general contractor, a […]

Recently, contractors have reached out to us to pursue various claims on their behalf arising out of work performed or materials furnished on a project. One of the many questions that are asked is whether they can recover interest on the amount due. New York State permits interest on all claims to be calculated at […]

Almost every contract in the commercial arena contains a clause permitting the general contractor to withhold 10% retainage on behalf of the subcontractor. Sometimes, the retainage may be reduced to 5% once substantial completion is achieved. The question becomes when is the general contractor required to release the retainage to the subcontractor? From the general […]

Over the years, I have written many articles about how egregious arbitration is in the construction community. Every contract which contains an arbitration clause should have the clause stricken before the contract is executed. The reasons for that, from a legal point of view, are that you are subject to the whims and idiosyncrasies of […]

Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing a mechanic’s lien. Every contractor, subcontractor and supplier should know the correct time frames in order to properly protect their receivables. I cannot emphasize enough the importance of filing a mechanic’s lien. Many times it is the difference between getting […]

The construction industry is presently dealing with the increase cost in materials including concrete, gypsum, lumber and fuel prices. Contractors are caught in a squeeze as to whether to continue performing the work on a project and lose money or terminate the contract and risk possible legal ramifications. The best strategy to avoid the severe […]

In spite of many previous statements, lectures and articles, there seems to be a dearth in investigation of the parties with whom a contractor does business. It is easy to find out who the owner is on a particular project. That comes from a title search. It is also easy to know who your contract […]

On a regular basis, we get telephone calls from contractors and subcontractors seeking to file a mechanic’s lien without them realizing that their lien rights expired. Shockingly, most of the contractors and subcontractors do not know the correct time frames associated with filing a mechanic’s lien. Every contractor, subcontractor and supplier should know the correct […]

Recently we have come across a new and insidious indemnification clause that we want to alert you to. Indemnification is a fancy way of saying that you have to pay somebody back. Essentially, I will pay you back if you lay out money for me. Hold harmless, which is usually used in connection with indemnification, […]

On a regular basis, we get telephone calls from contractors and subcontractors seeking to file a mechanic’s lien without them realizing that their lien rights expired. Shockingly, most of the contractors and subcontractors do not know the correct time frames associated with filing a mechanic’s lien. Every contractor, subcontractor and supplier should know the correct […]

When you are involved in a lawsuit there is no guarantee that you will be able to establish your position. This fact applies whether you are suing somebody or somebody is suing you. There is never a guarantee about the outcome of a piece of litigation. How a court or jury views the witnesses, evidence, […]

Every month I write articles indicating the importance of filing a mechanic’s lien to protect your interests. If done properly, the filing of a mechanic’s lien can be a beneficial tool in collecting payment. The ability to protect your receivable by maintaining a secured interest in the real estate should not be overlooked. If after […]

I discussed in the past the ridiculous clauses that The City of New York and the various surrounding bureaucracies are inserting into their contracts that can create enormous headaches and havoc for the contractor. Unfortunately, the Courts are enforcing those provisions. In a recent case, the General Contractor was awarded a contract with the New […]

In the era of online shopping, many retail stores and businesses are feeling the economic crunch. Retailers are closing all or large portions of their stores. Bankruptcy filings are on the rise. Retailers are taking advantage of Chapter 11 proceedings in order to obtain a fresh start in dealing with the various creditors. Many retailers […]

In many of my articles I address the importance of filing a Mechanic’s Lien. Many times it is the difference between collecting and not collecting. A Mechanic’s Lien is valid for one year. In a commercial project, it can be renewed the first time without a court order and then two more times with a […]

Almost every project has an architect preparing the plans and reviewing the work. Sometimes the architect maintains a limited role in a project and is hired to only to draw up the plans. Other times, the architect takes a more aggressive approach on a project and is involved in the day-to-day aspects of the project, […]

Many contracts, including the AIA contract, address the issue of termination for cause. As a subcontractor, one of the rights available to you if your requisitions are not paid is to terminate the contract and walk off the project. The contract usually requires specific notice to the general contractor in the event you refuse to […]

Over the years, I have emphasized the importance of properly calculating the amount of your Lien in order to avoid the harsh remedies associated with an exaggerated lien. You must lien for the work performed and materials furnished. Filing a Mechanic’s Lien for future amounts due, the total contract sum when all of the work […]

Every public project over $50,000 requires payment and performance bonds from the general contractor. The purpose of a payment bond is to ensure payment to all subcontractors and suppliers who have not been paid on the project and file a proper claim. The purpose of the performance bond is to ensure that the work is […]

The concept behind a Mechanic’s Lien is that the materials and labor must be done for the construction and improvement of a particular piece of property. This means that you cannot deliver your materials and do your work at “Project A” and lien “Project B.” Your materials and labor must be identified as going into […]

I have advised clients over the years to be careful when performing work for a tenant. In the event the tenant fails to remit payment and vacates the property, it may be extremely difficult to hold the landlord responsible. The Lien Law allows a contractor to file a Mechanic’s Lien after it performs work and […]