Category Archives: tips

The police are at the door! Service of the construction lawsuit on your company (Law & Order: Hard Hat files Part 2)

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sheriff carThe police?  Yes, that’s right.  If you are sued, at least in North Carolina, you may find Mr. Policeman (or Ms. Policewoman) at your door.  There are several ways that you may find out you or your company are being sued, but undoubtedly seeing the Sheriff at the door is the most nerve-racking.  Heck, we have Sheriffs in our law office occasionally to serve papers, and the sight never fails to startle me.  So be forewarned—the first you find out that there is a lawsuit may be when Johnny Law himself comes knocking.

While unnerving (as it is often meant to be by the party suing you), rest assured that all the Sheriff will be doing is identifying you and handing you papers showing you’ve been sued.  The Sheriff doesn’t actually have to hand you the papers personally- in fact, depending on if and how you are incorporated, he may be handing them to your spouse, another adult that resides in your house, your business partner, or an officer or manager of your professional association.  While the Sheriff is not supposed to leave papers with a mere employee, that can and does happen as well.

The Sheriff is not the only way you can be sued.  You can also get a certified mail package—you know, the type that requires you to go sign for it at the post office.  Or, you may get a Fed Ex package.  If you are being sued in federal court, or you know the lawsuit is coming, you may not get anything, as it may all come to your lawyer instead.

What should you do if you do get the lawsuit (called the Complaint)?  First, run, do not walk, to your insurance carrier and/or lawyer.  Do not pass go.  This should be the first thing you do.  If you don’t have a lawyer, but you have insurance, your agent should be able to help you report the claim, and a lawyer will be assigned to you by the insurance company.  If you have a lawyer, you can report to him/her, and ask the lawyer to make the claim on your behalf to your insurance company.

Remember, however, that you need to report it as soon as you can.  In state actions in North Carolina, you have 30 days from receipt to respond.  In federal actions, you have 20 days.  There are certain rules concerning weekends and governmental holidays that change these deadlines at times.  But the important thing to remember is that you must respond, timely, or you can end up with a judgment entered against you in default.  So, when you report the lawsuit, the first thing your agent or lawyer will want to know is the date you (or someone connected with you) first received the Complaint.

If you report the claim and do not hear back?  Follow up.  Never assume that an email went through or that the person you called isn’t on vacation or in the hospital.  Make sure that you speak with your agent and/or lawyer personally and that they know when you were served.

Questions? Comments?  Have you ever been sued?  Do you now know something you wish you knew then?  Drop me a line or comment below.

Next week in our series:  You have the right to an attorney! (but one will not be appointed for your construction lawsuit)

Photo (c) freefoto.com

 

AIA Triangle Home Tour (this Saturday!) (Tue Tip)

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AIA Triangle House TourThis Saturday, make plans to attend the annual Triangle Tour of Residential Architecture. This year’s tour showcases award-winning, architect-designed homes throughout the North Carolina Triangle region.
  
What:  AIA Triangle Home Tour
When:  October 6th, 2012 (this Saturday)
 
   
Featured residences including homes by the following Firms:
Will you go?  Even if you cannot tour, check out the photos and details of the homes on the AIA Triangle Home Tour website.  And congrats to the participating, award-winning Firms.

Need some HSW or PDH credit hours? Come here me speak in Chapel Hill on Wednesday!

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For my local readers, if you are looking to earn up to 7.0 HSW contact hours or  7.0 PDHs, come here me this Wednesday at the Halfmoon Seminar on Construction Law in Chapel Hill, North Carolina. 

 I’ll be speaking on “Making Changes and Resolving Disputes During the Construction Process“. 

changes construction sign

Other topics include:

  • Construction Contracting in Traditional and Alternative Project Delivery Systems
  • Entering into Construction Contracts and Subcontracts
  • Accessibility Review and Update
  • Ensuring Environmental Compliance During the Construction Process
  • Protecting Entities Seeking LEED Certification

Registration is here.

If you register, be sure to let me know! Would love to meet more blog readers in person! 

 

2012 Construction Jobs That Are in High Demand (guest post) (Tue Tip)

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Today’s guest post is by Derek Singleton, ERP Analyst with Software Advice, a website that reviews construction software. 
 

The construction industry is undergoing a change–several states are showing positive signs of job growth. A June report released by the Associated General Contractors of America (AGC) indicates found that 20 states added new construction jobs. The catch, however, is the jobs that are available require highly skilled individuals. 

 

The chart above aggregates survey data of the top five anticipated engineering and skilled labor shortages from 2,223 construction industry professionals. As you can see, engineers of all types are expected to remain in high demand.To find out what’s driving job gains in the industry, I recently caught up with AGC’s Chief Economist, Ken Simonson. In my conversation with Simonson, he highlighted three key drivers to the current trends in construction employment.

  1. Low vacancy rates are spurring investment in apartment complex construction.
  2. The acceleration of natural gas extraction is fueling related construction job growth.
  3. Manufacturing investment is leading to new manufacturing facility construction.

So what kinds of jobs fit well with these market drivers? Below I’ll profile a few relevant professions that are currently in demand.

Apartment Complex Construction
Apartment construction requires nearly every kind of construction trade on the job. However, there are a few particular positions that are particularly high demand.

Architects: Efficiently building an apartment complex starts at the design process. With new apartment construction increasing, architects familiar with designing multi-family residences will be in high demand.

Carpenter: Naturally, carpenters are in high demand as more complexes are built they’re needed for everything from framing to setting crown molding.

Millwork: The millwork trade is in high demand to produce the doors, crown moldings, window casings, etc. needed to finish an apartment.

Electrician: Electricians that are familiar with multi-family electrical wiring are know how to run standard power distribution to lighting and other outlets in apartments.

Natural Gas Extraction
The growth in natural gas extraction from underground shales is also supporting new construction jobs. The majority of these jobs involve heavy construction or civil engineering.

Plumbing Engineering: Natural gas extraction is complex process that involves a lot of fluid dynamics. For this reason, drilling sites typically need a plumbing engineer to help figure out how to manage the hydraulics needed to extract gas from thousands of miles below the Earth’s surface.

Civil Engineering: Of course, effectively planning these roadways requires civil engineers that can effectively plan the infrastructure of these projects.

Manufacturing Facilities
Construction jobs are also being supported by the uptick in domestic manufacturing, which is prompting manufacturers to build new facilities in the U.S. As a result, there are two main professions that are in high demand.

Structural Engineering: Structural engineers are needed both for apartment construction and for manufacturing facility construction. These engineers need to be able to check facilities to ensure that buildings are up to code, and help amend design plans as construction is underway.

Iron work: Iron work professionals are needed to put together the large steel frames that facilities require. Within the iron work profession, welders are among the most in demand professions as certified welders are hard to find given that it can take several years to achieve certification. /

Electrician: Commercial electricians are needed when constructing a new manufacturing facility because of the need to install power and controls to motors and HVAC systems at the facility–in addition to run power distribution directly from the electrical grid.

Thanks, Derek, for your post.  Please comment below, or check out Derek’s map of construction employment by state and comment there. 

And, be sure to pick up your copy of “7 Critical Mistakes that Engineers & Architects make During Project Negotiation and Execution that Sabotage their Projects & Invite Litigation” by signing up for email updates on blog posts or by sending me an email at mbrumback at rl-law dot com.

Play Nicely in the Sandbox (or, Why GC’s and Subs Should Get Along) (guest post)

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Chris HillToday’s guest post is from Christopher G. Hill, lawyer, Virginia Supreme Court certified General District Court mediator and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC, a LEED AP. Chris authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals. Additionally, Chris is active in the Associated General Contractors of Virginia and a member of the Board of Governors for the Construction Law and Public Contracts Section of the Virginia State Bar.

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First off, thanks to Melissa for this opportunity to post here at Construction Law in North Carolina. Having co-presented with her and discussed construction contracting from all perspectives, I can safely say she’s good at what she does and shares great insight here at her blog.

Now that the formalities are out of the way, I thought I’d share my thoughts as one who represents many subcontractors and general contractors on the topic of good relationships meaning good business. I am always a bit surprised at the failure of either side of the GC/Sub dynamic to act in a businesslike manner.

Remember, the General Contractor and the subs are in the boat together in many ways. They both have a job to do and, ultimately, an owner at the top of the payment food chain that is looking to get a project done on time. Ultimately, they both have an architect/engineer representing the owner that may or may not be up on the job (sorry Melissa) and may not be trained in project management. If the general and its subs aren’t “playing well in the sandbox” together, the relationships up and down the project chain get all out of whack and cause delays in completion and importantly in payment.

Another phenomenon that happens more frequently than I would like is the general contractor “burning” good subcontractors in an area through making payment (particularly final payment) difficult to receive. While this type of activity occurs on what I am sure is the minority of projects (and fully acknowledging that my practice makes me think that Murphy was an optimist) I am always flabbergasted by this sort of treatment given to a subcontractor that should be helping pull the boat.

While it is obvious that subs need to play nice with GC’s because they have the money, it may seem less obvious how the above can hurt a general contractor. The short answer (and don’t worry I won’t be going into the long one) is that burning good subs eventually means that good subs won’t work with you. Subs talk to each other. Your reputation will precede you. Eventually the economy will improve and you won’t be the only game in town. Not to mention that such actions are the stuff of which claims are made.

In short, getting along costs your local construction lawyer money because he or she doesn’t get to go to court for you. It is almost always less expensive to get along, finish the job and work out payment than to get we attorneys involved in the construction claims process.

To make a long story somewhat less long, GC’s work with the subs and subs, play nice with the GC’s. It’s the best way to a lower stress project and a higher monetary payoff.

Thanks, Chris, for your insights from the contractor’s side of things.  Even if you did (politely) slam the hard-working design professionals.  Reader, now it’s your turn.  Share your thoughts, comments, or questions with Chris or me in the comment section, below.