Don’t say Please– Threaten to Tow! (aka Contracts matter)

No parking please sign No parking tow sign

I was wandering through downtown Wilmington, North Carolina the other week after a trial was pushed off of the court docket.  Not two feet away from each other I saw these two signs.

Ask yourself—if you were looking for an (illegal) parking spot to run a quick errand—which spot would you park in?  The one with the sign that nicely asks you not to park there, or the one with the sign that says they will tow you if you do?  I think we can all agree that in this case, being nice does not help that parking spot’s owner.  You know the other guy means business, so you take him seriously.

What does all this have to do with architecture or engineering?

It is a stark reminder that words can be powerful.  Your contract language can make the difference between getting what you want (the empty parking spot) versus having to live with something you don’t (someone in your space).  It can mean the difference between the dispute venue you favor or the right to additional compensation.

When it comes to your livelihood, don’t chance it to be nice.  Gentlemen’s agreements and saying “please” just don’t cut it any more.

Which parking spot would you use? Do I even have to ask?  Saying please is all well and good, but stating your rights upfront will get you farther.  Sign up for email updates directly to your inbox, so you never miss a post here at Construction Law NC!

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Photos in this post: Creative Commons License

ENR’s Top 500, the Economy, and Lawsuit Fever

Engineering News-Record logo

[This article was originally published on May 5, 2011]

Engineering News-Record (ENR) has released its annual list of the largest 500 design firms in the United States.  The list is based on design revenue generated by the firms, and covers both public and privately-held companies.

The bad news?  According to ENR, overall design revenue of the top 500 firms ($79.8 billion in 2010) was down 0.2% from 2009.  I know my clients have been hit hard.

One thing that construction lawyers see in down markets is more lawsuits.  Whereas in good times people will let something go to move on to their next project, in slow times contractors and owners sometimes look for a scape-goat.  That scape-goat, more often than not, is an insurance-carrying design firm.  Sad, but true.  Now, more than ever, make sure that you are practicing good risk avoidance, documenting everything, and communicating thoroughly.

There is some good news:  “There is a general feeling among the Top 500 firms that the markets will recover over the next 12 months.”  Let’s hope they are right.

What do you think?  Will the market improve this year?  How is your company weathering the economic storm? 

Spend Less Time with Your Lawyer with these Tips (Tue Tip)

“The best time to plant a tree was 20 years ago.  The next best time is now.”  ~Chinese Proverb

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If you haven’t yet acted to streamline your contracts and your new client procedures, do so now.  Unless, that is, you like spending time with your lawyer.  Lawsuits take time and money.  Avoid them (and your lawyer) through good risk avoidance practices.

Last year I wrote a post on 6 Ways to Limit Risk through effective use of contracts on your Projects.   Included in that list were such tips as:

  • Always, always, always use a contract for each new project.  (Verbal agreements are very hard to prove in Court).   Without a written contract, you are trusting yourself to laws you may not agree with or giving up valuable protections.
  • Get your contract reviewed by your insurance carrier.  Insurance check-ups through your agent or broker are usually free.  Why risk it?
  • Have your contract reviewed by your attorney.  ( I happen to know someone who does this regularly for her clients.)
  • Establish a new client protocol.  Make sure all new clients sign proposal or engagement letters.  Document now; worry less later.

These are all extremely important ways to minimize your risk.  Of course, if you are reading this blog, I recognize that I am probably preaching to the choir.  But it is worth repeating.  Just do it.

Do you have procedures that minimize your company’s risk?  Tell me in the comment section, below, what has worked for you.

If you need help creating or revising your contracts or client protocols, drop me an email at mbrumback@rl-law.com 

Photo: (c) Freephoto.com via Creative Commons License.

Certificate of Merit to sue architects or engineers? (Tue Tip)

[note: this article was originally posted April 5, 2011.  As of September 4, 2025, there is no requirement for a Certificate of Merit in North Carolina, but things can change, so stay tuned]

You know how they say the best laid plans can go awry?  Just as unforeseen issues pop up in construction, they also pop up in the practice of law.  So, while it is still Tuesday, I apologize for the late hour of my post.

I bring you good tidings, despite my lateness.  Right now, in the North Carolina General Assembly, is a proposed bill that would require a Certificate of Merit to be filed in civil litigation against an architect, engineer, or a design firm.  If it passes, this would require that an unbiased, third party (who is also a licensed professional) has reviewed the claim and believes it has merit.

boy holding certificate of merit

This boy has his certificate of merit: will lawsuits against architects and engineers require the same?

Such a pre-lawsuit requirement  has long been a right that doctors enjoy.  Now, there may a chance for architects and engineers to also enjoy protection from otherwise frivolous lawsuits.

The bill has been introduced, had its first reading, and has been referred to the Judiciary Committee.  While the bill is a long way from passage, it is a good sign that the public recognizes too often professionals are the targets in lawsuits simply because of their “deep pockets” (really!) or their insurance coverage.

(h/t to Kathryn Westcott, ACEC-NC Executive Director)

Photo: (c) John Dolan via Flickr/Creative Commons License.

A Building Code Engineer’s perspective on the Earthquake

Imad Naffa

Imad Naffa

After my post on the Japan Earthquake last week, I heard from Civil Engineer Imad Naffa.  Imad is a self-described “atypical Civil Engineer with passion for providing Building, Fire, Accessibility, ADA, LEED, Green and AEC related info. and resources”  and the President and Founder  of Naffa International, Inc., a Building Code Consulting Firm based in Fresno, California.

Imad has written about the Earthquake and Tsunami from the Building Code perspective in an article for his Blog entitled “Japan’s Earthquake and Tsunami My take as a Building Codes Engineer.”   Check it out, as well as his interactive, curated Earthquake site.     Editor’s Note:  Since this was first posted, Imad has passed away.  His blog was apparently taken down by his family, who have my deepest sympathies.  Imad was a creative, knowledgeable, and kind man.  He is missed.

Do you agree with Imad that  it is imperative that the U.S. improve and update design, construction  methods and building codes?  Let Imad and me know your thoughts in the Comment section, below.    And, if you are interested in Building Code resources, be sure to check out his comprehensive list of Technical Links, which I am adding to this Blog’s Resources page.