By Stephen A. Hilger, Esq. This is Part 8 in a 20-part series of blogs dealing with issues of arbitration in the construction industry. Once you are in arbitration, the rules of engagement do not mysteriously appear. Since arbitration is a creature of contract, you must look to the contract...
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How to Choose an Arbitrator for Your Case
Choosing an arbitrator is considerably more art than science. People will tell you they want an arbitrator who is fair and who will listen to the case with an open mind. The reality is, litigants want an arbitrator who will most likely view the world the way they do and will attempt to choose an arbitrator who is a most likely candidate in this regard. To accomplish this, there are several ways to select an arbitrator.
Is Retainage Reform Around the Corner in Michigan?
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.
Captive Insurance Opportunities Using Contractor Controlled Insurance Programs (CCIPs)
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...
Reversing Over 25 Years of Precedent, Supreme Court Holds that Internet Sales are Subject to State Sales Tax
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...
Controlled Insurance Programs Within the Construction Industry
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...
The Michigan Supreme Court Moves Forward on Prevailing Wage Repeal
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...
Amendment to Construction Lien Act to Benefit Design Professionals
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.
Changes to the 2017 AIA A201 General Conditions: Part 1: Section 1.1.8 – Initial Decision Maker
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...
Changes to the 2017 AIA A201 General Conditions: Invalidity
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...