BARRON & ASSOCIATES -- Construction Contracts -
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Construction Contracts
At Barron & Associates, we have many years of experience in assisting general contractors,
subcontractors, and material suppliers in preparing, bidding, negotiating and litigating construction
contracts. As litigators in numerous construction defect and construction disputes, we understand the
importance of having carefully drafted construction contracts with the necessary and beneficial terms
and conditions which will provide the contractors with their contract administration, project
management, and claims and dispute handling.
Our attorneys commonly handle public and private construction contract drafting and negotiations
related to:
Home Improvement Contracts
Oftentimes, most of the construction disputes with homeowners stem from improper handling of theConstruction Contract and Change Orders. Disputes over payments often occur when the homeowner
and contract are not on the same page regarding the contract price and the value of any additional work
as the additional work was not put in writing. A detailed Construction Contract which clearly identifies
both the Contractors and Homeowner's rights and obligation will assist the parties in managing the
project.
In addition, it is important for any contractor who performs home improvement work to be aware of the
new rules and regulations affecting the home improvement industry. For example, in 2005 the
California Legislature introduced AB 316, which became effective on January 1, 2006, requiring
contractors to include various amended notice and disclosure provisions in all home improvement
contracts to better provide homeowners with an understanding of their rights when executing a home
improvement contract. Some of these laws can be found in Business and Professions Code § 7159,
which include the following:
The above list is just an example of some of the new requirements that must be included in a home improvement contract, and there are many more new rules regarding specific language that must be
included in the contract, in addition to various notice requirements. Importantly, Contractors can be
punished and disciplined for failing to provide these notices pursuant to Bus. and Professions Code
section 7159(a)(5) which states: "Failure by the licensee, his or her agent or salesperson, or by a
person subject to be licensed under this chapter, to provide the specified information, notices, and
disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for
discipline."
As a result, it is important that contractors to have their contracts, and their contract administration
procedures and change order policies reviewed, to ensure they are in compliance with the new rules
relating to home improvement contracts.
At Barron & Associates, we have many years of experience in assisting general contractors,
subcontractors, and material suppliers in preparing, bidding, negotiating and litigating construction
contracts. As litigators in numerous construction defect and construction disputes, we understand the
importance of having carefully drafted construction contracts with the necessary and beneficial terms
and conditions which will provide the contractors with their contract administration, project
management, and claims and dispute handling.
Our attorneys commonly handle public and private construction contract drafting and negotiations
related to:
 | Identification and modification of critical contract clauses, such as indemnity clauses, hold | |
| harmless clauses, payment clauses, termination clauses, dispute resolution clauses, attorney's fees provisions, and scope of work clauses | ||
| Prequalification requirements | |
| Scope of Work Interpretation and Disputes | |
| Scheduling Issues and Delay Damages |
Home Improvement Contracts
Oftentimes, most of the construction disputes with homeowners stem from improper handling of the
and contract are not on the same page regarding the contract price and the value of any additional work
as the additional work was not put in writing. A detailed Construction Contract which clearly identifies
both the Contractors and Homeowner's rights and obligation will assist the parties in managing the
project.
In addition, it is important for any contractor who performs home improvement work to be aware of the
new rules and regulations affecting the home improvement industry. For example, in 2005 the
California Legislature introduced AB 316, which became effective on January 1, 2006, requiring
contractors to include various amended notice and disclosure provisions in all home improvement
contracts to better provide homeowners with an understanding of their rights when executing a home
improvement contract. Some of these laws can be found in Business and Professions Code § 7159,
which include the following:
 | The writing shall be legible with the appropriate headings and typeface | |
| Before any work is started, give the buyer a copy of the contract signed and dated by both the | |
| contractor and the buyer. | ||
| Provide the buyer with a notice of right to cancel. The buyer's receipt of the copy of the contract | |
| initiates the buyer's rights to cancel the contract. | ||
| Provide the updated Notice of Mechanic's Lien Language. | |
| Provide the updated Change Order Language. | |
| Provide the appropriate Notice regarding Performance and Payment Bonds. | |
| Provide the required language regarding Down Payments. | |
| Provide the necessary notices regarding General Liability and Worker's Compensation. | |
| Provide the required information about the Contractor State License Board. |
The above list is just an example of some of the new requirements that must be included in a home
included in the contract, in addition to various notice requirements. Importantly, Contractors can be
punished and disciplined for failing to provide these notices pursuant to Bus. and Professions Code
section 7159(a)(5) which states: "Failure by the licensee, his or her agent or salesperson, or by a
person subject to be licensed under this chapter, to provide the specified information, notices, and
disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for
discipline."
As a result, it is important that contractors to have their contracts, and their contract administration
procedures and change order policies reviewed, to ensure they are in compliance with the new rules
relating to home improvement contracts.
Barron & Associates
1600 South Main Plaza, Suite 195
Walnut Creek, CA 94596
info@barronlawoffice.com
P: (925) 937-4400
F: (925) 937-4450
1600 South Main Plaza, Suite 195
Walnut Creek, CA 94596
info@barronlawoffice.com
P: (925) 937-4400
F: (925) 937-4450
These materials have been prepared by Barron & Associates for informational purposes only and are not legal advice. You should not act upon this information without seeking professional legal counsel. © Copyright 2007 Barron & Associates. All rights reserved. |