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The Number One Reason Contractors Get Sued

February 13th, 2017|Construction Law|

You work hard, get a bid to be accepted as a contractor, do a good job building and still get sued. You ask yourself why. Read on to find out:

  1. Number one reason contractors get sued:
  • Payment Disputes: This could be in the context of commercial or residential projects; public or private contracts.
  • Typical scenario: Contractor does work, usually good work, client is happy.  Client makes changes, contractor fails to get the client’s approval to a change order showing it is OK that the price has increased because of the […]

Differences Between Corporations and Limited Liability Companies in Structure and Management

February 6th, 2017|Business Law|

So you want to start a new business and your accountant tells you to have an attorney form an LLC or Corporation. If there is no tax difference between the two, how do you know which one is better for your business?

Your attorney will probably guide you on which one provides better liability protection. But here is what you need to know as the business owner:

Corporations

  1. The owners are shareholders and receive stock certificates. The shareholders elect the board of directors annually.
  2. The board of directors sets the general direction […]

How to Protect Your Business and Yourself During Construction

January 30th, 2017|Construction Law|

To protect your business, sometimes all you need is to pay attention to some small details and make minor adjustments. These minor adjustments can save you hundreds of thousands of dollars in legal fees or sometimes can keep it from going bankrupt because of a law suit.

Owners: Do the following.

  • Get conditional lien releases when you make a progress payment and and unconditional lien and releases at end the end of a job.
  • Read all contracts presented to you and if you do not understand do not sign
  • Confirm all […]

Mechanics Lien 101

January 16th, 2017|Construction Law|

This blog talks about what a mechanics lien is, how can it be imposed on a property and how a property owner can get rid of it.

What It Is

California law provides that anytime a contractor, engineer, or architect does work that benefits real property, if that person does not get paid, he or she can assert a claim of mechanics lien.

Contractors use this important tool to assure they get paid.  But there are strict requirements for a contractor to be able to lien a property successfully.  All contractors […]