Construction and Design Contracts— they are more important than you might think! (law note)

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As regular readers of this Blog know, contracts are extremely important for all parties involved in a construction project.  While verbal contracts can be enforced, a written contract, which is finely-tuned to your specific project, can save you a lot of time and money later on if the proverbial poo hits the fan.

I recently read AIA’s take on contracts, in their Construction Risk Brief (which you

Shaking hands with bribe money

Hopefully your own contracts don’t start like this handshake!

should subscribe to [free] if you have not already).  Their featured article is on “Best Practices for Construction Contracts”.  In the piece, they discuss  7 key points to address in each contract.  I concur for the most part, although want to point out that some of them (such as the regular monitoring and documentation bullet point) are deserving of their own post, as there is a *lot* that can and does go wrong during the construction administration phase.

The AIA, of course, is interested in having you purchase a subscription to their 300+ form database.  And, if you are involved in a lot of projects, you should definitely consider doing so.  The AIA contracts have almost become the ‘gold standard’ of construction contracts due to their familiarity and popularity.  They are not, however, a one-size-fits-all set of documents.  The AIA contract forms themselves have some decisions or elections to make within them.  And, you may find that an AIA contract doesn’t work for your project.  For example, it may be too verbose for a small porch addition to a house, for example.  If you work with homeowner clients, they will (rightly) be very intimidated by the length and breadth of an AIA contract—even a small project contract from the AIA.

Can a non-AIA contract be used successfully?  Absolutely.  It just needs to have the same key issues spelled out so all parties know the agreement.

Check out the AIA’s article, and let me know if your own contracts pass the test.  If not, now is the time to update them to best protect yourself from future risk.

 

If you get ‘reported to the Board’ for your Professional License (law note)

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The NC Board of Architecture and the NC Board of Examiners for Engineers and Surveyors (as well as other Boards, including the NC Licensing Board for General Contractors) have grievance procedures in which anyone – client or not—can file a grievance against you.  That’s the bad news.  The good news is that the Boards have seen it all before, and if the grievance is someone unhappy about a bill, or using the process to harass you for unfounded reasons, they will recognize those complaints for what they are.

HOWEVER, this does not mean that you should treat any grievance, no matter how unfounded, lightly.  The first thing you need to do is contact your insurance broker/agent and report the matter.  Often times, your insurance carrier will hire an attorney (someone like me) to defend you free of charge (at least up to a certain dollar amount).  This is part of your insurance coverage, and you should take full advantage of it.

problem? write a grievance t-shirt

What if you do not have professional errors & omissions insurance?  First, get thee to an agent asap and get yourself some for any future issues.  Second, hire a lawyer anyhow.  You could do it yourself if you choose to do so (although  “a Man who is his own lawyer has a Fool for a Client” ).  But whatever you do, do not ignore the Board’s inquiry.  Respond by the deadline they give you, with all details and information that they ask for.  Sit down for an interview with the Board investigator.  Do not bury your head in the sand and hope it will all go away on its own. 

And no, most cases do not result in loss of your professional license.  There are some egregious cases where the license is in jeopardy, but those are few and far between.

I have helped clients with Board grievances survive the process.  As I have told them, a Board grievance is never good news, but it doesn’t have to break you.  Use your available resources to minimize any negative outcome.

Photo: Cristian Lopez  Credit: Printerval  CC by NC 4.0

Always keep your time limits in mind—to know when you can sue, and when you can no longer be sued (law note)

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As the calendar year is getting a little long in the tooth, the subject of time becomes top of mind.  Time, in litigation, can make or break your ability to sue (or be sued).

A recent blog post by blogger John Caravella addressing statutes of limitations in New York (6 years) and Florida (5 years) brought to mind the issues that sometimes surprise folks working in North Carolina.

In North Carolina, the statute of limitations is (generally) set at 3 years for breach of contract matter, including breaches of construction contracts.  However, there are always exceptions.  The statute of repose in North Carolina for damages to real property is 6 years.  What that means is that if there is a ‘latent defect’ that is not obvious right away, you may still have a claim beyond three years (but not beyond the 6 year repose limit).

stop watch

Often times, designers enter into AIA contracts where the law of the jurisdiction where the project is located controls the contract.

If your project is in North Carolina, there may be very different statutes of limitation than if you were working on a project in another state.  It pays to always be aware of what state’s laws you are working under on a project.

Have you ever been surprised by a construction time limit that was different than you expected it to be? How did you discover it, and how did you handle it?  Let me know in the comments below, or drop me an email at mbrumback@rl-law.com.  

Time piece © rawpixel.  Public Domain

The Old Well gets ADA-accessible Face Lift

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Long time readers may know that my blood runs Carolina Blue.  As a double Tar Heel and a Chapel Hill resident, I’ve seen the Old Well, the symbolic center/emblem of the University of North Carolina at Chapel Hill, for many years.

The Old Well, before the renovation, (c) Kelly.arch3, CC by SA 4.0 via Wikimedia

Today, she’s sporting a new look:  an ADA accessible look.  UNC reported  that it has completed its project to make the Old Well accessible to those in wheel chairs through a ramp project that has been artfully integrated into the area.

The adaption looks like it was always part of the original plan, and, far from being an eye sore, looks pretty spiffy.

Read about the renovation and see the new Old Well (an oxymoron?) and see the construction and finished project by clicking here.

Thoughts on the design?  Do you agree or disagree that it looks intentional and not out of place?  Share below in the comments, or drop me  a note.

 

Vacation during a Project? Time for your Construction Documents to Shine!

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Happy Lazy Day Everyone!  What’s that?  You didn’t know that August 10th is considered National Lazy Day?   Well, it is.  And it ties nicely in with today’s theme: how to take a vacation during the thick of the construction project.

Everyone needs a break.  You are no different.  It can seem, however, that it is impossible to disconnect from the ongoing onslaught of questions, requests for information, change orders, pay applications, and the like.  But you can.  The key to taking–and enjoying–your vacation is to plan ahead.  This is the time for your construction documents to shine.  Make sure that your designs are on schedule; make sure that the change orders and RFIs have been processed so there is no backlog.  And make sure that your second in command is familiar enough with the day to day details to step into your shoes for the duration.

Vacation

Then– be sure to give everyone notice.  Is it any of their business that you are taking some time off?  No.  However, everyone procrastinates.  So, if you give the entire team advance notice that you will be “off grid” starting on X date, they will be more inclined to get pending issues to you sooner rather than later.  They won’t want to be stalled on progress, and with a heads up on when you are out of pocket, they will make it a priority to get requests to you ahead of your departure date.

Will this be more work for you before you set sail? Yes.  A recommendation:  consider fudging the truth a little on your departure date.  Don’t tell the team the *exact* date you start your vacation— give them a day or two ahead of that.  Then you can use that “extra” time to respond to all of those last minute inquiries, and still be on time for your actual holiday.

Will things go wrong while you are on vacation?  Probably.  But will this advance notice help?  Absolutely.  Give it a try.

Do you have vacation-work horror stories?  Tips that made it easier for you?  Share in the comments below, or drop me an email. 

Photo Vacation by Nick Youngson CC BY-SA 3.0 Pix4free