Breaking Legal News, Guides & Counsel
Retainage is often thought of as a necessary evil in the construction industry. General contractors and owners see it as a guarantee on a subcontractor’s work in the event of non-performance. Subcontractors often view retainage negatively because, in some instances, it means they are essentially financing the job.
By: Mark A. Rysberg Captive insurance within the building construction industry is well established. Such programs are generally developed to reduce insurance premium costs and to approach risk management from a strategic perspective. Captive insurance programs can provide additional strategic...
By Christopher Nyenhuis “[I]n this world nothing can be said to be certain, except death and taxes.” – Benjamin Franklin. Until recently, however, paying states sales tax on items purchased over the internet was largely avoided. But no more. In a June 21st decision, the Supreme Court of the United...
By: Mark A. Rysberg A controlled insurance program (CIP) can be implemented on a construction project to provide project-specific coverage that is directed at managing the risks transferred to third-party insurers. There are generally two forms of CIPs; those controlled by contractors (CCIPs) and...
By Stephen A. Hilger On May 30, 2018, the Michigan Supreme Court issued an Order clearing the way for the repeal of prevailing wage laws. The Plaintiff, Protecting Michigan Taxpayers, organized a ballot question committee that sought to repeal Michigan's Prevailing Wage Act under MCL...
Generally speaking, SB 465 amends the Construction Lien Act, to allow architects, engineers, and surveyors to have a construction lien on recording a notice that they have entered into a professional services contract with a landowner, without an actual physical improvement having been made yet on the property.
By Stephen Hilger, Esq. This is part 1 of a 15-part series on the changes to the AIA A201 General Conditions. This part deals with section 1.1.8. In the 2017 changes, particularly section 1.1.8, there are some additions to the Initial Decision Maker clause. The additions are as follows: Section...
By Stephen A. Hilger, Esq. This is part 2 of a 15 part series on the changes to the AIA A201 General Conditions. This part deals with section 1.2.1.1. Section 1.2.1.1 is new and reads as follows: § 1.2.1.1 The invalidity of any provision of the Contract Document shall not invalidate the Contract...
By Stephen A. Hilger, Esq. This is Part 6 in a 20-part series of blogs dealing with issues of arbitration in the construction industry. Once in arbitration, you will come to the crossroads of a decision on how many arbitrators to use. Should you use a single arbitrator? Or should you use a panel...
By Stephen A. Hilger, Esq. This is Part 5 in a 20-part series of blogs dealing with issues of arbitration in the construction industry. Once you have made the decision to utilize arbitration as a dispute resolution mechanism, the next question becomes what vehicle you should use to accomplish that...