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Showing posts from November, 2011

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

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  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 ...
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When the EPA Comes to Call

I received a call last week from a home contracting company in the Midwest about a franchisee who had received a letter from the EPA.  They were advised that a representative would be coming to their offices or the job site to review their procedures under the Renovation, Repair and Painting Rule.  Given that the federal fine can be as high as $37,500 per day, per infraction, they were quite concerned about how to handle this visit and avoid any problems.  I advised the following: 1.  Establish whether your work is covered.    a. Is renovation work being done on pre-1978 homes?    b. Does the work disturb at least 6 interior sq. ft. of paint or 20 exterior sq. ft. 2.  Put together a loose-leaf notebook with your certified firm and certified renovator certificates.  Include any  initial course completion certificate and the most recent refresher course completion certificate. 3.  Have a file...
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When the Homeowner Cuts Corners

I have encountered a new issue in home renovation projects that should put contractors on alert. Perhaps it is even time for a new contract clause.  I assume this is due to the state of the economy and the widely available access to information on the Internet, but homeowners are taking their construction into their own hands.  In one situation, the homeowner insisted on buying her own fixtures at a well-known hardware chain and asked the contractor to back the allowances out of the contract price.  In another, the contractor was told which personnel were acceptable on the job and was presented with a never-ending punch-list. In both situations, the outcome was the same; contractors were seeing their profit margins dramatically reduced. What to do?  As always, the responsibility for educating the homeowner falls on the contractor.  The homeowner needs to understand that the budget should allow for at least a 10% increase over the contract price as a ...
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