Everything You Need To Know About Public Construction
Becker & Poliakoff announces upcoming public contracting seminars to train you about the unknown nuances of public construction....
Becker & Poliakoff announces upcoming public contracting seminars to train you about the unknown nuances of public construction....
When a lender takes title to a foreclosed home or condominium and completes construction, that lender is under a duty to act with reasonable care in completing construction....
Building code interpretations are available from the Florida Building Commission in the form of declaratory statements and binding interpretations....
If you want work done for free, hire an unlicensed contractor. The 3rd District Court of Appeals rendered a not-final opinion October 27th articulating a very clear message: unlicensed contractors need not be paid. In Master Tech Satellite, Inc., etc. v. Mastec North America, Inc., etc. (No. 3D08-2509 October 27, 2010), Master Tech was hired by Mastec North America to install residential digital satellite systems for Mastec's customers. Mastec North America apparently did not pay for the work. Master Tech then sued to recover on the contract in an amount in excess of $300,000.00. During the course of discovery, it was brought to light that the work performed by Master Tech involved at least some electrical work and required a license. It was also discovered that, in fact, Master Tech did not hold such a license. The trial court granted summary judgment for defendant based on Sec.489.532, Florida...
One of the most important decisions for voters in the State of Florida is whether or not to vote in favor of Amendment 4. Regardless of party affiliation, all voters should vote "No" on this amendment....
A lender who becomes the seller of new homes acquired from his defaulting builder or developer may be exposed to liability for construction defects whether or not the lender actively participated in any aspect of the original construction....
Performance bonds are actually contracts and, like all contracts, can be modified or drafted to contain whatever provisions the parties agree to. Great care should be taken to ensure you fully understand the rights and ramifications the bond language creates....
A recent case shows the importance of defining the scope of a prevailing party attorneys' fee provision in contracts....
A recent Florida appellate court decision extended a lender’s liability to contractors for failure to fully fund a construction loan on a project. §713.3471 of the Florida Statutes makes construction lenders liable to contractors and lienors who served a notice to owner if the lender ceases funding a construction loan without first notifying the contractor and lienors. In that situation, the lender could be liable for the actual construction costs incurred plus 15% for overhead and profit from the date on which the notice should have been provided until the date it actually is provided, if at all.
In an opinion not yet reported, Whitehead v. Tyndall Federal Credit Union, the court liberally interpreted this statute to make a lender liable to the original contractor when the lender failed to pay that contractor, but instead paid a replacement contractor. The lender denied liability, saying it fully funded the construction loan as required by the statute, even though the funding went to a subsequent contractor. The court held that, since the construction loan funds didn’t all go to the original contractor, the lender was required to provide statutory notice to the contractor that loan proceeds would no longer be funded to that contractor, even though they would later be paid to the subsequent contractor. The court reversed summary judgment in the lender’s favor, paving the way to the lender’s potential liability to the contractor for actual costs plus 15% overhead and profit.
Therefore, in this environment where non-payment of contractors has proliferated, consideration should be given to whether claims against the construction lender are available
At age 46, Lee Weintraub was the youngest recipient ever of the Lifetime Achievement Award from the Florida Bar’s Construction Law Committee. Mr. Weintraub is also an adjunct professor of law at Nova Southeastern University Shepard Broad College of Law teaching construction law. Mr. Weintraub has been recognized by Chambers USA – America’s Leading Business Lawyers every year since 2003. Chambers USA noted he focuses on licensing and construction defect litigation, but is particularly renowned for his expertise in the Construction Lien Law. He was also selected in the The Best Lawyers in America© every year from 2006 through 2018.
Lenders beware: there are some circumstances in which a lender may be directly liable to third parties for construction defects as a principal or alter ego of the developer....