Richmond Virginia – Construction Law Musings- Richmond, VA

Thanks to Construction Law in NC

Originally posted 2012-09-20 12:00:31.

I am always grateful for the opportunity to “muse” on other folks blogs. I am particularly grateful to Melissa Brumback (@melissabrumback) for the opportunity to discuss why contractors and subcontractors should “play nicely in the sandbox” at the great Construction Law in North Carolina blog.

Here’s an excerpt from the post. For the rest, you’ll have to go visit her blog.

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.

I recommend that you check out the post and the remainder of Melissa’s great blog, particularly if you are a North Carolina construction or AE professional.

I welcome your comments below. Please subscribe to keep up with this and other Construction Law Musings.

Why Construction Law?

Originally posted 2010-10-18 09:00:54.

As I sit here and contemplate the almost 1 year of Construction Law Musings, I realized that I have not ever really explained why I like what I do. If you had asked me in law school if I was looking to be a construction lawyer, I likely would have looked at you as if you were from another planet. I knew I wanted to get into court but that was about it.

The fact is, I basically fell into construction without much planning ahead. I worked at the Office of the Attorney General of Virginia out of law school representing the Virginia Department of Corrections. After close to 5 years of helping out the VDOC and fielding inmate law suits, I decided to take the plunge into private practice. I worked at Meyer, Goergen & Marrs, a small firm here in Richmond, VA that represented many construction suppliers, general contractors and subcontractors. After almost 4 years there, I moved to DurretteBradshaw, PLC and then to my present solo practice at The Law Office of Christopher G. Hill, PC. Here I practice almost exclusively in the area of construction law and construction risk management.

However, it was not until relatively recently when I began to participate fully in the AGC of Virginia, and the national AGC that I really began to love what I do. I found out that I enjoy my clients. I like hanging out with folks that are businessmen, and mostly self made. I like to represent people I like. I am able to fully commit to these folks because they are generally pragmatic and task oriented, much as I am.

I also like the fact that I can get into court, but at the same time temper this with risk management through contract review and doing what I can to keep my commercial construction clients out of harms way. While the use of AIA forms is good for certain projects (and the ConsensusDOCS are another great set of forms), they are not for every situation and so I get to be creative.

In short, I enjoy what I do, and hope that you do too.

I hope that you will comment below and let me know about your law practice and what makes it enjoyable. If you have any questions, please contact me and I will happily respond. In the meantime, please subscribe to keep up with this and other Construction Law Musings.

What Contractors Can Learn from Smurfit and Quimonda

Originally posted 2016-11-24 10:01:00.

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It will come as no shock to you that the economy has put a hit on the construction industry. Left and right we hear about developers and contractors hitting the skids, both through bankruptcy and otherwise. Personally, I take the view that the construction industry will end up stronger for the house cleaning that is occurring. However, this is a topic of discussion for another day.

What we can learn, both in Richmond, VA where the two now Chapter 11 bound companies in the title of this post have major facilities, is that contractors who work on land owned by even the formerly most stable of companies must be careful to protect themselves. If staples of Central Virginia like Smurfit and Quimonda can go belly up, anyone can.

Your first line of defense is a good mechanic’s lien system that keeps you secured in the face of a bankruptcy. You may not get everything, but without a secured claim you could get nothing. Remember, that while you may want to get along with a general contractor or owner that may hire you again, if you don’t get paid getting along doesn’t matter. A good general contractor will understand the plight of a subcontractor who feels the need to lien a project out of worry that an owner will be unable to make the payments that can allow the general contractor to make payments down the line. Of course a good payment bond on the project does not hurt either.

The second line of defense is the expertise of an attorney skilled in the ways of the bankruptcy court to help you when an owner does in fact go bankrupt. Creditor’s committees, secured versus unsecured, even where the courthouse is are all things someone who knows their way around the Bankruptcy Courthouse can help you navigate.

In short, in dicey economic times such as these, make sure you stay protected. Doing so will go a long way toward getting you through to the light at the end that is not the oncoming train.

As always, please subscribe to keep up with the latest Construction Law Musings or join the discussion by commenting below (or both) if you find this interesting or just want to share your thoughts.

Construction Related Legislative Changes Effective July 1, 2013

Originally posted 2013-07-01 09:00:22.

Every year at this time, a new set of statutes comes into effect. This year is no different. If you are a fan (or at least follower) of the Virginia General Assembly and have an interest in construction, you have likely kept informed about some of the various statutory changes that will take place today (and probably a few that were attempted and killed).

This year (and as summarized below), the Virginia legislators made changes, tweaks, and even a clarification or two to everything from the process for filing and recovering from the Contractor’s Recovery Fund to some of the procurement procedures under the Virginia Public Procurement Act. Additionally, and in a bill that I was following closely and discussed here at Construction Law Musings, the good folks at the capital added a requirement that a memorandum of mechanic’s lien list a contractor’s Virginia license number and explicitly prohibiting improperly or non-licensed contractors from recording a memorandum of lien. Whether this is a change or just a clarification has been discussed elsewhere, but one thing is certain, this new requirement for information included in such a memorandum will be strictly interpreted.

Continue reading Construction Related Legislative Changes Effective July 1, 2013

Termination, Warranty Claims and Back Charges

Originally posted 2015-08-21 09:00:13.

For this week’s Guest Post Friday here at Musings, we welcome Jim Fullerton. Jim is the President of the law firm of Fullerton & Knowles, P.C., which has attorneys licensed in Virginia, Maryland, Pennsylvania, and the District of Columbia, is a Martindale Hubbell Peer Rated Lawyer AV^® Preeminent.^™ The firm represents owners, lenders, design professionals, suppliers, subcontractors, general contractors and other members of the real estate and construction industries, filing mechanic’s liens, surety bond and other construction claims across all of the states in the Mid Atlantic region. He also represents creditors in bankruptcy issues nationwide, particularly defense of bankruptcy preference claims; advises owners and lenders in real estate lending and acquisition transactions; on all real estate and construction law issues; contract formation and disputes.

The firm’s Construction Law Survival Manual is well known and widely used by participants in the construction process. The 550 page manual provides valuable information about construction contract litigation, mechanic’s liens, payment bond claims, bankruptcy and credit management and contains over 30 commonly used contract forms. All of this information and recent construction law issues are constantly updated on the firm’s website.

Rightful Termination

If the contractor has been rightfully terminated, the contractor has no claim against the owner for damages. Under a properly drafted contract, the terminated contractor may be liable for the costs of completion after termination and other damages.

Continue reading Termination, Warranty Claims and Back Charges