Some time ago I posted about minding the gaps that can happen where the world of common law contracts meets Article 2 of the Uniform Commercial Code (“UCC”). I see the same issues repeating in my work recently so it is time to revisit this topic.
The interface between common law contracts and Article 2
Part One on this topic of “How low?” discussed the issue of lien claims by remote claimants. These can be a surprise to an owner or contractor. Remote claims might come from suppliers and subcontractors perhaps several tiers deep on a construction project. The limitation on the rights of remote claimants turns on the definition
The extent of lien rights down the chain of subcontractors and suppliers is a perennial question. It can mean big dollars at risk for the potential lien claimant as well as for the owner and general contractor. Which raises the question, who is simply too remote at the margins to have the right to claim
Windfarms proliferate in response to the growing need for renewable energy. At the same time, their birth and death can create collateral issues. For example, disposing of damaged turbine blades is a challenge. The blades are more than 100 feet long and could need to be cut to even fit on a semi-trailer for disposal.
I have lost count of the number of times I have warned construction industry clients to be careful with lien waivers. They may seem to be just routine—until they are not. A recent case from the Wisconsin Court of Appeals; Great Lakes Excavating, Inc. v Dollar Tree et al (March 30, 2021) underlines the importance
Many construction contracts now contain arbitration clauses. Arbitration can be an effective dispute resolution process, but how the clauses operate in practice can raise challenges. This is especially true when intertwined with mediation requirements and mechanic liens under state law. The scenario below illustrates how the seeming conflicts could be resolved.
Assume a contractor under
Protecting the right to get paid is central to any business and the construction industry is no exception. The Protecting Payment Series on the Larkin Hoffman Real Estate and Construction Blog focuses on the means and methods businesses in the construction industry use to protect their right to payment. It touches on issues of contracts,
For mechanic lien claimants having “priority” is a charmed state. Priority refers to the ordering of claims against a piece of real estate. Claims with first priority get paid first from the proceeds of a sale or foreclosure. Being “junior” can mean no payday at all.
Minnesota, like most states, has its own rules for
The construction world is changing rapidly like everything else. Tech is making its way ever deeper into the construction industry. The shortage of labor has become chronic since the Great Recession. Covid-19 has only made that problem worse. At the same time, the pool of potential new hires is inexorably growing more diverse.
Diversity is
There are clouds gathering now on the payment horizon for the construction industry. The clouds converging now and on into the fall call for even greater attention to protecting construction industry receivables. This applies to the industry from top to bottom.
Construction was an “essential business” allowed to continue operating in Minnesota. That designation allowed