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As-Planned versus As-Built Schedule
When construction on a project does not proceed as planned, the question of damages arises, i.e. who pays and how much. Determining the amount of damages can be accomplished by comparing the as-planned construction schedule to the as-built schedule. The damages calculation will be based on the difference between the two.
WHAT WORK OR MATERIALS CONSTITUTE A MECHANICS' LIEN?
Only work or materials that are included within a state's statutes on mechanics' liens may constitute a mechanics' lien on an owner's property. Most courts have held that in order for work or materials to constitute a lien, they must be an integral part of the construction on the owner's property and not ancillary to the construction. Some courts have held that where work that may constitute a mechanics' lien is combined with work that may not constitute a mechanics' lien, the mechanics' lien is void.
Duty of Prompt Payment
On construction projects, payment originates from the owner with each successive party below him obligated to pay the next party in line. With respect to public contracts, and even some private contracts, the duty of prompt payment has been statutorily declared.
Owner's Ratification of Agent's Actions
An owner's agent with respect to the construction process may exceed his authority. When this happens (of course, there are exceptions), the owner will not be held to the ramifications stemming from the agent's act. However, the owner may take a different route and actually ratify the agent's conduct even though, at the time of the acts, the agent had no authority to engage in the conduct.
ADDITIONAL INSURED PROVISIONS IN CONSTRUCTION CONTRACTS
When a general contractor requires a subcontractor to obtain insurance for the subcontractor's work under a construction contract, the general contractor often requires the subcontractor to include the general contractor as an additional insured under the subcontractor's insurance policy. Similarly, when an owner requires a general contractor to obtain insurance for his or her work, the owner may also require the general contractor to include the owner as an additional insured under the general contractor's insurance policy.
