Even a text can make a contract! (law note)

text message bubblesI’ve written many times about how you should–indeed, must–document your construction project in case there are problems or disputes later on.  Of course, you need to update the plans and specs.  But equally important, you need to document agreements to do things outside of the contract documents and also all verbal directives from the owner.

Tennessee lawyer Matt Devries recently wrote a nice blog post entitled:  LOL! OMG. HUH? Court Finds That Text Message Can Form Binding Contract, discussing  how even text messages can be legally binding.  Something to remember, and learn from.  I always tell clients I’d like to see any deviations signed by all parties, but failing that, a fax or email will do.  Just don’t rely on a conversation alone.  Texts are *not* the preferred method of documenting something for the court, but they are better than nothing.

Read Matt’s post and drop him a line.  And comment below if you’ve ever considered using text messages to establish a written record of agreements.

Photo courtesy Pixabay.

Betterment on Construction Projects, part 2 (more cowbell) (law note)

more cowbell sign

Another question about betterment, and about A/E insurance policies:

I am confused on why the A/E even carries error and omission insurance.  I must re-read one of the policies.  And if betterment protects the designer, why not the construction contractor who omits a work activity from his bid?

Betterment is a legal concept that covers anyone involved.   Usually, though, the situation arises when the contractor submits a change order request for a missing item, and then the owner wants to get reimbursed by the designer for the cost.  So, the contractor is getting his payment in the form of a change which, sometimes, is something he may have previously considered in his bid anyhow.  So in that sense, the contractor doesn’t really need the protection of the betterment, as he is getting paid for the change.

But, regardless of betterment, there are many other types of claims that can be made against the A/E such as errors (as opposed to omissions) for which insurance is a good idea.

Your turn:  Have you ever omitted something on your plans, that the owner then wanted you to compensate him for, despite the fact that he had no actual damages? Share below.

 

PS:  Wondering about the picture in this post?  Saturday Night Live fans will remember the classic More Cowbell skit with Christopher Walken and Will Ferrell.  Since this is my 2nd post on betterment, it seemed appropriate.  Photo credit:  Danielle Scott.

Lessons from a Diner: Up Front Costs can Save You Money in your Engineering Practice (law note)

greekgrilled.jpgI happen to frequent a place in my hometown called Elmo’s Diner.  A lot.  As in, many of the servers know me by name.  The food is good, yes.  The selection is great.  But there is a much more important reason that I go there over and over again– the service.  Elmo’s seems to always have enough staff on hand, and they also work together to make sure your wait is never very long.

There are some other places in town that skimp on hiring waiters and waitresses.  I guess they figure, the fewer they have working at any one time, the less money they have to pay out.  Even though, of course, waiter minimum wage is much lower than regular minimum wage due to the tip factor.  But some of these other places (who shall remain unnamed) really do seem to have the mindset that they will save money by not hiring enough staff for the number of customers.

Maybe that thinking works for them- in the short run.  Do you know how much money I spend at Elmo’s Diner?  Let’s just put it this way– I really should invest in direct deposit with them!  These other places?  I forget, and go to them every now and again, thinking, it can’t be all bad, right?  And almost always, I remember why I do NOT go to them.

Now, back to construction.  Many professional service firms are like the unmentionable restaurants above– they skimp on things that “cost money”.  Notably, in two areas (1) professional liability insurance (errors & omissions coverage), and (2) getting legal assistance at the beginning of a project.  These architects & engineers are making the same short-sighted mistake, thinking they are “saving money.”  And yet, very often, in the long run they are costing themselves money– in contract disputes, legal wrangling at project end, or in paying out of pocket for large claims.

You should have E&O insurance if you are a working professional.  Period.  You should also have your contracts and proposals reviewed by a lawyer.  Preferably, before any major new undertaking.  The up front costs are small, but the impact can be huge.  Just ask anyone at Elmo’s.

Your turn.  Are there places that you frequent because of their superior service?  Do the extra costs seem to pay for themselves over time?  Share below. 

Belts, suspenders, and breakfast bars: construction contract tips (law note)

SuspendersBelts, suspenders, and breakfast bars.  Want to know what they have in common, or how they relate to your construction contracts?

Take a gander over to Construction Law Musings this morning, where I am guest-posting on the importance of being clear– very clear– in your construction contracts.

Key takeaways?

  •  clear up possible points of confusion
  •  don’t “wing it” with old contracts
  •  read your entire contract during the negotiation phase

Read the entire post at this link:  Belt & Suspenders: the preferred style for your Construction Contract.

See you there!

 

 

 

Give Way or Yield? The jurisdiction of your contract does matter! (Law note)

give way signHave you ever been to England?  If so, you’ve likely seen their version of our “Yield” sign– the “Give Way” sign.  It is a bit jarring to those from this side of the “big pond”.

Similarly, contracts can be worded differently– and, interpreted differently– depending on the state that you are in.  This is why it is always a good idea to have your contract or proposal vetted for the state(s) where you provide professional services.

When confronted with a “give way” sign you have the general idea of yielding, but might be confused by that whole “left side of the road” thing in some countries, where if you are turning right, you must give way to all vehicles coming towards you including those turning left.  Likewise, you might have a good understanding of your construction contract in one state, but not how it would be interpreted in another state.

As just one of many examples– the statute of repose can vary widely.  In North Carolina, it is 6 years.  In South Carolina, it is 10 years.   The jurisdiction (state) that you are in does matter– sometimes critically so.

Have you ever found yourself in trouble because of a difference of state laws from what you are most familiar with?  Share in the comments section below.

 

 

Copyright © All Rights Reserved · Green Hope Theme by Sivan & schiy · Proudly powered by WordPress