Litigation-I Win, You Lose vs. Mediation-Win/Win

Image
  Litigation is a zero-sum game.  It destroys relationships and fosters enmity between the parties.  Parties rarely walk away happy.  Even if they win, the expense of litigation is enormous, and collecting on judgments is difficult. Disputes ultimately resolve, but the focus on winning at any cost can lead to prolonged legal battles.  Living with a lawsuit causes ongoing stress, which can distract you from your business and even have an effect on your health. In a courtroom, the final decision lies with a judge or jury who may not fully grasp the complexities of the case. Parties relinquish control over the outcome, potentially leaving them dissatisfied with the final judgment. Mediation has the opposite effect.   Rather than polarizing people, it enables the parties to attack the issues and not each other.     The process promotes open communication, collaboration and problem-solving, which enables parties to actively participate in crafting ...

Time for "Spring Cleaning" in Construction

When the Renovation, Repair and Painting Rule came into effect, there was a flurry of activity as contractors became concerned about how it would affect their businesses.  They were facing the additional costs of certification and compliance and started thinking about lead poisoning in a way that they never had before.

There was always a group of contractors who thought that it was all smoke and that it was not worth the effort.  They never got trained or certified, and were/are able to underbid their competitors for renovation jobs.

As months passed, I heard the buzz of angry contractors who made the effort to do it right and follow the law.  Many felt that it was a joke.  Registration in certification classes waned. At the same time, the economy has improved, and contractors are getting back to business. They don't have as much time to learn the nuances of OSHA or deal with paperwork.

In the last two months, however, stories have started cropping up around the country about fines.  All of a sudden, contractors and construction companies are being visited by the EPA, OSHA and the Department of Labor to see if they are following the RRP Rule, OSHA safety practices and maintaining proper worker's compensation insurance.  The government may start fining businesses for the classification of employees as independent contractors. Compliance is becoming more important.

So, as you prepare for warmer weather, it is time to do some internal "spring cleaning."  Make sure that your insurance coverage is up to date and as comprehensive as it should be.  Follow the laws and maintain proper documentation.  Consider having your contracts reviewed to make sure they are in compliance with your states' laws and that they adequately protect you.  As they say, "better safe than sorry."

Popular posts from this blog

Eligibility Requirements for the LEED Green Associate Exam from Green Building Education and Training

What are the eligibility requirements for the LEED Green Associate exam? http://www.green-buildings.com/content/78626-what-are-eligibility-requirements-leed-green-associate-exam After March 31st, 2009, candidates for the LEED Green Associate (GA) credentials must fulfill eligibility requirements. LEED Green Associate candidates are required to do ONE (1) of the following: Option 1: You must be (or have previously been) employed in a sustainable field of work This is perhaps one of the more nebulous requirements posed by the GBCI, because no definition of a "sustainable field of work" is given. The USGBC does state that the company needs to "relate to environmentalism or the green building industry". If you are in any doubt that your profession would qualify, contact the GBCI at gbci.org or by calling 1-800-795-1746. Option 2: You must be (or have been) involved in a LEED Certification Project To prove eligibility by way of LEED project involvement, you must have bee...
Read more

When the Homeowner is a Bully

I've seen a new trend in contractor disputes lately, and it isn't pretty.  Some homeowners are making unreasonable demands on contractors, and bullying them into doing work without getting paid.  They unreasonably withhold payments, or impose penalties for delays that they cause.  They expect contractors to do all kinds of extra work without being paid or changing the completion date. I have had a series of these recently.  What is a contractor to do? When first meeting with a homeowner, trust your instincts.  If you are sensing red flags, do not take the job. Never let the work get ahead of the money.  If there is a change order, make sure that the payment is contemporaneous with the work. Make sure that all change orders are in writing and reflect any change in the contract price and date of substantial completion. Include a provision in your contract that entitles you to get attorney's fees if you have to go after a client for payment. Make sure t...
Read more

Should a Contractor Have the Homeowner Test for Lead?

I would like to learn more about the advisability of lead testing.  Homeowners might not want their homes tested for lead, because it becomes public record, and may interfere with the sale of a home or the ability to obtain a mortgage or homeowners insurance.  In addition, I strongly advise contractors not to do the testing themselves.  Let the homeowner pay an independent company to do it.  Otherwise if the GC brings a claim against a lead testing company for a false negative, the company might state that the GC did not use the test kit properly.  If the homeowner does have the house tested, consider refusing to do the work unless the homeowner has lead abatement work done.
Read more