Legal issues part two by Bicycle Bungalows Custom homebuilder Houston Heights
Written for Bicycle Bungalows
A warning sign can be a client with occupations such as engineer or accountant who could turn out to be micromanagers. Even a recently retired senior executive with a long career of leading people and being in charge may be prone to relieve retirement boredom by trying to manage your project. So another important screen question for clients is how involved do you want to be on this project? The more involved the person is, the more headaches they can cost for the custom homebuilder Houston Heights. I want my clients to go to the job every day, but don’t want them out there trying to manage my people. That’s our job. I think a lot of legal difficulties in this business could be illuminated by setting up a meeting with clients upfront and telling them who the professional is, how the project manager is going to be leaving this job, and what everybody’s roles are.
Using unfamiliar or untested products can also increase risk. A North Carolina custom homebuilder Houston Heights had clients who insisted on using an exotic woods they came across from South America for an outdoor deck. They found it really cheap, and we said you shouldn’t do that because their manufacturing process down there is an estrogen at our local suppliers. They did it anyway and the deck begins failing and curling just a year later. We had to eat a bit of that repair work. Subsequently, contracts now state that I will not warrant any products that the builder has a vetted or approved.
Another way to be proactive about risk concerns trespassing. Generally, property owners aren’t liable for injuries but trespassers sustain while on their property. But there are exceptions that can make the level of responsibility unpredictable and prompt a judge to rule, say, that an owner negligently allowed a dangerous condition to exist, which then becomes an attractive nuisance and enticed children to play with it. Trespassers can turn out to be anybody, but for an infield project, that job sites most likely an authorized visitors could simply be curious neighbors.
Before one custom homebuilder Houston Heights r in Wisconsin start the project, he distributes a letter to every neighbor at least seven houses up, down, and around the job site. The letter states that the builder will strive to be a good neighbor while working in their community, and if there are concerns about site conditions, parking, noise, or anything else, the latter urges residence to call one of three phone numbers for the company’s two owners or the project manager. The letter also warns about construction sites being dangerous places for children to play and for people to visit, but mansions, if you’d like a better look at the project, we would be more than happy to escort you on a tour. Inviting neighbors to visit the job site with supervision can assuage the temptation to sneak in.
One of the bigger risks for builders is being liable for damages when their subs are at fault. One builder reduce his risk by requiring that his company be added as an additional insured to the homeowners builders risk insurance and to all his subcontractors commercial general liability policies. The additional endorsement, also called being co-insured, can defend the general contractor from getting sued for something related to the case of contractors work. And one project, a plumber unknowingly broke a faucet on a hot tub. Water flooded the main floor of the unoccupied House, calling huge damage. Luckily, the builder and its insurance carrier for protected from being sued by the subcontractors insurance company because the builder was covered as an additionally insured on the plumbers policy.
One custom homebuilder Houston Heights found out the hard way about the long reach of the lien. He had hired at Mason and given him money to buy 50 cubes of bricks, lentils, sand, and submit to start building walls for a project. When the job is finished, the builder paid the mason the rest of the balance. Later he received a notice of lien from his Mason supplier. That’s when he discovered that his subcontractor never pay the supplier for materials, and the dinner was going after the builder for the bill. The builder said he could try to put a judgment on the mason, but what will that do? The guy has no money. as a custom homebuilder Houston Heights, there is nothing he can do about it. He prove that he paid the guy. He showed the contract, the checks, and bank statement, but it didn’t matter because the supplier was never paid. His contract was not with the supplier. The contract was with their customer, and they can still sue me and lead me for that.
Since that experience, that builder now makes a practice of validating who the suppliers are for all of his subcontractors. Any issues payment to his traits, he writes on the check the names of the subcontractor and the supplier. Now both parties have to endorse the check to deposit it in my bank account. If the sub cash is a check without the suppliers endorsement, that is fraud.
One custom homebuilder Houston Heights requires all his trades sign a release of lien before issuing a check. He says he doesn’t have a problem getting lean release signatures, but some builders said they hesitate with enforcing that requirement on their subs either because doing so may sour the relationship or the subs simply refuse to sign. One builder has a mandatory policy that subcontractors provide a lien waiver with their invoice or else the builder will not issue a check. One time a new sub pushed back and didn’t want to find a lien released until after he was paid. He relented with the builder explain that the language of it’s the final lien waiver states that the lien release and certification becomes affective only one payment is received. It’s not effective until the subcontractor gets paid, but the builder wants to make sure they get the waiver ahead of time so they don’t have to pay someone and then have to track them down in order to get it.