Joint Ventures & Geotechnical Agreements (two free seminars) (Tue Tip)

ConsensusDocsTwo upcoming, FREE webinars from ConsensusDocs might be of interest:

 Venture to Manage Your Partners Wisely (with the ConsensusDocs 298 Joint Venture Agreement)

September 19th, 2012 at 2:00-3:30pm ET (this Wednesday; i.e., tomorrow!)

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What Lurks Below?  Using ConsensusDocs 246 to Get the Answer  (discussing the importance of consulting agreements for geotechnical services)

September 26th, 2012 at 2:00-3:30pm ET (next Wednesday)

Registration for both webinars is here

Do you know of upcoming seminars or other items of interest to  Construction Professionals?  Drop me a note so I can help spread the word.

Architects & Engineers – Are you committing a Class 2 misdemeanor without realizing it? (Tue Tip; law note)

handcuffsBuried within the general contractor provisions of the North Carolina General Statutes is a little-known provision that can get architects and engineers in hot water.  If you recommend to a project owner anyone who is not properly licensed under the general contractor statute, you have committed a Class 2 misdemeanor.  Really!  Here is the pertinent language:

§ 87-13. Unauthorized practice of contracting; impersonating contractor; false certificate; giving false evidence to Board; penalties

Any person, firm, or corporation not being duly authorized who shall contract for or bid upon the construction of any of the projects or works enumerated in G.S. 87-1, without having first complied with the provisions hereof, or who shall attempt to practice general contracting in the State, except as provided for in this Article, and any person, firm, or corporation presenting or attempting to file as his own the licensed certificate of another or who shall give false or forged evidence of any kind to the Board or to any member thereof in maintaining a certificate of license or who falsely shall impersonate another or who shall use an expired or revoked certificate of license, and any architect or engineer who recommends to any project owner the award of a contract to anyone not properly licensed under this Article, shall be deemed guilty of a Class 2 misdemeanor. And the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the prosecution of any violations of this Article.

However, there is also some relief in the same statute, which provides that:

No architect or engineer shall be guilty of a violation of this section if his recommendation to award a contract is made in reliance upon current written information received by him from the appropriate Contractor Licensing Board of this State which information erroneously indicates that the contractor being recommended for contract award is properly licensed.

Has this issue ever really been litigated?  Yes, it has.  While I cannot point to reported cases, I will tell you that I have had this become an issue – more than once – in my practice.  Each time, the design professional knew that the entity involved had been a licensed general contractor, but the entity had lost its contractor’s license before the particular project at issue.

Take-away:  Even if the general contractor is the largest and most well-known in the state, always, always, always check with the Licensing Board to confirm that a general contractor is in good standing before making any recommendation to a project owner.  Just in case.  Since Consider it two minutes well spent.

Questions, comments, experiences with this statute?  Share in the comments section of the blog.

Photo (c) Riki Maltese via CC

 

 

 

Who is Working for You? Consider These Three Items Before Hiring in your A/E Firm (guest post)

black shadow of a womanToday, a tale of caution before you make your next hire, from guest blogger Jane Smith.  Jane is very familiar with personal information screenings and online background checks, and regularly writes about these topics in her blogs. Feel free to send her comments at [email protected] or leave a note in the comments section, below.

 

I watched my parents build a small landscaping store into a bustling business for over twenty-five years. Though the rewards were great, my mother and father worked tirelessly every day of the week. I often wondered if it was really worth all the anxiety and stress they carried around with them.

I once overheard my father saying, ‘It’s not the work that’s tricky. That’s always been easy. It’s managing the fifty employees that gets me.’ For years, I never understood what he meant. Whenever I visited them at their company, everybody seemed to be busy as a bee causing no trouble. I later learned that my parents always had one or two employees they had to keep their eye on. It sounds easy, given that two out of fifty is hardly anything. Yet, as I later learned through my own career, even one person can derail an entire successful operation.

Knowing who works for you is a vital part of running any business. If you don’t know who is stepping on the job each day, you may find yourself in a bind, a liability – or worst of all – a lawsuit. As I’ve learned through my own work experiences, it’s vital to know who you are hiring before you bring them on the job. Consider these three items before hiring anyone to join your staff:

Word-Of-Mouth-Referrals are the Best

As the old saying goes, “It’s all about who you know.” It may seem unfair, but it’s true: It’s best to go with somebody you know as opposed to a random person who walks through the door looking for a job. Whenever you are hunting for new talent to join your team, ask those you trust most – fellow employees, family members, business colleagues, etc. – to help you track down your next hire. I’m not saying that an unknown applicant is unacceptable; however, searching through a web of referrals is usually the best way people find astute, reliable employees. Sticking to this formula will help you in transitioning a new employee to your team.

Run a Background Check – Always

It would be wonderful to think that every person who came to work for you was a saint with no problems, no past, and no trouble. Unfortunately, we don’t live in such a world. It’s best to have your guard up, especially when hiring new people. A background check reveals a lot about a person: their past, their problems, and, likely, what they are capable of doing. If a person comes to you with poor credit and an extensive criminal record, what does that say about the person? I’m not saying that the world isn’t full of second chances, but you need to ask yourself what this person is capable of doing to your business. Are you willing to take a risk on that? That’s up for you to decide.

If it Smells Fishy, It Probably is

Let’s say you’ve hired a new employee and things seem to be going great, but then all of the sudden job materials start disappearing. The first one or two don’t really bother you, but the third and fourth burn. What’s going on? Well, here’s the unfortunate truth: If stuff starts to turn up missing and it didn’t before there was a new employee in the ranks, you might have a problem on your hands. No, don’t accuse anyone of anything without hard evidence, but keep your eye out for more occurrences. I give you this wisdom because I watched this very thing happen to my parents. They hired someone to manage their business on the weekends and one day $400 turned up missing from the register. My father quietly looked into his new employee’s past and discovered that he had stolen money from a number of businesses. You can imagine how much longer he was employed after that.

Hiring new employees can be an exciting process, but it’s always best to proceed with caution. If you find yourself needing some extra help, consider these three tips when hiring anyone and everyone.

Thanks Jane!  Questions, comments, stories to share of your own hiring problems?  Leave a note below.

Engineering Better Fracking Practices (Tue Tip)

Engineering Degree logoWant a good, fairly neutral, place to send your clients & friends when they ask you to explain hydraulic fracturing to them?  Maybe you want your own refresher course?  Then check out this article, Engineering Better Fracking Practices, from the folks at the website Engineer Degree dot net.
If you are new here or haven’t been in awhile, do check out my Resources page for an easy reference to handy links you may find useful.  If there are other links you think should be included, drop me a note.
[note: this post updated 7/13/15 to reflect removal of Engineer Degree dot net from web; also removed from Resources page on 7/13/15]

Dear Abby Advice for Engineers– too good not to share!

A recent column in the ENR shares a plethora of good advice for structural engineers–and any design professional–who wants to avoid a lengthy, ugly construction claim lawsuit.  Among the good gems in the article:
  • “E-mails can haunt. ‘Any e-mail you write can be used against you. Be careful—don’t write anything you don’t want to show up on the front page of your local newspaper.’” [I always say: imagine having to explain what you wrote to your elderly grandmother.].
  • “A tip: Mediate, mediate, mediate: This is the chance to control the outcome. In arbitration or in front of a jury, others control the outcome.” [This is very true. Early mediation can sometimes be productive, but other times some discovery is necessary first. Each case is different, so discuss when to mediate with your lawyer.]
  • “Be careful what you say. Example: If you call the contractor ‘an asshole,’ you are not covered by your insurance; if, as the observer of the process, you call the contractor incompetent, you are.”  [While I’m not nuanced in the acceptable derogatory language that may or may not be covered by your insurance policy, in general err on the side of caution. Think of your grandmother again when you decide what language you will use.]
  • “It’s not the size of the claims that hurts, it’s the time it takes to fight it—and the cost…Get your insurer’s assistance during the project to try to resolves issues as they arise.” [Very good advice.  Often, free claims prevention/loss prevention services are covered under your errors & omissions insurance policy.]  
haunted house
Have you been haunted by the ghosts of emails you’ve written?

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 Questions?  Thoughts? Comments?  Share below.

Photo (c) Moon Stars Paper blog.