In January 2011, contractors became eligible to operate under a Limited Liability Company (LLC). Please see my previous blog on the benefits of operating under an LLC. Currently, the contractor must have insurance coverage...
Author: Cummins & White
Delivery Does Not Amount to Actual Use
July 29, 2013
In order to enforce a stop notice or to foreclose on a mechanic’s lien, a material supplier must prove, among other things, that (1) its materials were furnished for use in the particular job; and (2) the materials were...
Filing a Mechanics Lien in Los Angeles County
July 8, 2013
California has some common regulations about filing a mechanics lien. However, you will also need to grasp county specific requirements. I came across an article [1] that provided some simple, yet useful information....
Construction subcontracts frequently contain a “pay if paid” or a “pay when paid” provision. According to the terms of a “pay if paid” provision, the general contractor is not required to pay the subcontractor...
Design Professionals’ Duties To Third Party Purchasers and Homeowners Associations Expanded
May 10, 2013
It used to be pretty simple. A design professional, such as an architect, had very limited duties to a third party purchaser of a home or a homeowners association (HOA). However, following a recent California appellate...
Basically, bid shopping is the use of the low bid already received by a contractor to pressure other subcontractors into submitting even lower bids. Bid peddling, on the other hand, is an attempt by a subcontractor to...
Should I Sue?
October 31, 2012
Imagine you have the most amazing case. If you sue, there is little doubt that you would win. The facts appear perfectly aligned for you. But should you sue? Among the most important investigations you should commit to is a...
In these difficult economic times, some are providing loans to distressed businesses and individuals at high interest rates. Based on a recent experience, I caution lenders to ensure their interest rates are legal. As you...