CONTRACTORS
SERVICES
Our Firm works with contractors at all phases of the construction process and through litigation. Some of our services include:
1. Assistance with Licensing.
2. Business Entity Formation.
3. Contract Drafting.
4. Preliminary Notice Drafting.
5. Stop Payment Notices.
6. Stop Work Notices.
7. Mechanics Liens drafting and filing.
8. CSLB Matters.
9. Prelitigation Negotiations and Mediation.
10. Litigation.
Contracts
Complying with the CSLB requirements greatly increases the odds of contractors having a successful business. The starting point for each construction project is by having a well written contract. My office can assist in ensuring that your contracts meet the CSLB requirements and protect your legal interests.
For subcontractors, it is extremely important that they serve (mail) a preliminary notice within 20 days of starting work. It must be served on the owner, lender, and prime contractor. Failure to do so may result in subcontractors being unable to file a legitimate mechanics lien and stop notice.
MECHANICS LIENS & STOP NOTICES
Mechanics Liens have strict procedural requirements that are often missed by contractors inexperienced in liens. My office will assist you in ensuring the steps are not missed, so that your lien will be properly drafted, served, and filed. If it is necessary to file the foreclosure action, I will help you through that process.
Stop payment notices are a frequently overlooked method in obtaining a remedy for non-payment. Though a contractor cannot typically recover attorney's fees on a mechanics lien foreclosure action, a contractor may be entitled to attorney's fees on a bonded Stop Payment Notice.
Prelitigation Negotiation and Mediation
The vast majority of disputes are resolved prior to litigation. If the parties are willing to communicate, listen to each other, and can be reasonable, they will most likely be able to resolve their issues. However, if a dispute has been going on for some time the parties may have reached a point where they cannot listen to each other anymore.
My Office can take over the role of communicating with the other party and their attorney. To help streamline the issues as to what needs to be resolved. To determine if an agreement can be reached prior to entering into litigation.
Mediation is required in many contracts prior to litigation. If a party does not attempt mediation before litigation they may, by the contract terms, waive their right to attorneys' fees. An experienced mediator may help the parties reach a resolution prior to arbitration or litigation. I will assist you in preparing for the mediation and represent your legal interests at the mediation.
LITIGATION
My office will attempt to resolve a dispute with the opposing party prior to filing a lawsuit, but unfortunately if the other party is not being reasonable, ignorant of the applicable laws, or unwilling to communicate litigation may be necessary. I can assist you during all phases of the litigation process.
Filing a lawsuit should not be taken lightly and is extremely important that the contractor comes to Court with clean hands. Meaning the contractor should ask him/herself before filing a lawsuit a few questions:
- Was my contractor's license active when I performed the project?
- Was my workers compensation policy in affect at all times while working on the project?
- Do my payroll records match my workers compensation audit results.
- If a Home Improvement Contract, did my contract comply with the California Contractors' State Licensing Laws?
- If a subcontract, was the 20-Day Preliminary Notice timely issued?
- Was there a building permit for the project?
- Did I pass inspections prior to the contract breaking down?
- Did I comply with the time requirements of the contract?
- Did I pay all my subcontractors and suppliers?
- Were all my subcontractors licensed?
- Did I obtain signed change orders from my client?
- Did I sign an unconditional release for everything I was paid?
- Did I provide a conditional release along with my last invoice?
- Did the client not pay me everything that I am owed without a valid excuse?
- Do I have the documents to support everything above?
If the answer is "yes" to all those questions, then good! If the answer is "no" to any of those questions that are applicable, then that may be a hurdle in obtaining a recovery in Court. At the very least it may make litigation more expensive.
If you receive a Summons and Complaint, meaning the property owner has filed a lawsuit against your company, it is recommended that you immediately contact your Commerical General Liability Insurance Carrier. It is possible that your carrier may represent your defense free of charge.