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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 ...

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 th...

Worker's Compensation Information Available Online At the Massachusetts Department of Labor Website

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Mark Paskell first posted this at his blog,  http://www.thecontractorcoachingpartnership.com/Blog-Contractor-Coaching--Construction-Business-Coach-EPA-RRP-Lead-Rule/ , but I think it is so important that I wanted to post here as well.  Make sure all of your subcontractors have worker's compensation policies if they have employees.  If not, you may be held accountable if someone gets injured on the job.  Bravo to the government of MA for making this information available to the public. Here is a brief excerpt from the Massachusetts Department of Labor website;                                       Patrick - Murray Administration Launches  Free Web-Based Tool Will help Public Verify if Businesses have Workers Compensation Insurance Policy Boston, MA - The Executive Office of Labor and Workforce Development (EO...

EPA Starts Assessing Fines for RRP Violations

From Mark Paskell's blog:  http://www.thecontractorcoachingpartnership.com/Blog-Contractor-Coaching--Construction-Business-Coach-EPA-RRP-Lead-Rule/ The press release below came from the EPA.  It has been hard to persuade contractors that they need to become certified when it did not appear that the Renovation, Repair and Painting Rule was being enforced.  Now, there have been two substantial fines publicized: one in Connecticut last month ($30,700) and the one listed below.  It is time to have your contracts reviewed, insert clauses to protect you under the new law, and have your insurance policy reviewed for lead coverage! Kansas City, Kan., March 31, 2011) – Window World of St. Louis, Inc., has agreed to pay a $19,529 civil penalty to the United States to settle allegations that it failed to notify owners and occupants of at least 20 St. Louis area residential properties built before 1978 of lead-based paint risks prior to performing renovation work at those loc...

Automation of Surveying Presents More Job Opportunities, Better Pay

Here's a new post from Houston Neal: Surveying is going through a technological renaissance. The increased adoption of machine guidance systems has renewed the importance of the surveying trade. This technology calls for a highly-trained workforce, and surveyors are the most qualified for this job. But to get in on the action, surveyors need to learn to use this technology and re-brand themselves. GPS Machine Control Has Replaced Traditional Staking Unless you’ve been sleeping behind the wheel, you’ve likely heard of GPS machine control . Also referred to as machine guidance or automated machine control, these systems are widely used by heavy construction companies. They speed up work, improve grade accuracy and improve the billing and scheduling accuracy of jobs. For example, by calculating the amount of material moved in a day, they can substantiate bills or keep employees on schedule. The premise behind the technology is simple: just like using GPS in your car, a GPS machin...

Sick of RRP? It's Still Time to Update Your Contract

So am I.  Really.  All this talk about RRP and it feels like nothing's changed. The threatened fines have not really transpired, and today doesn't feel any different from yesterday.  I can speak about Massachusetts, but    Wisconsin ,   Iowa ,   North Carolina ,   Mississippi ,   Kansas ,   Rhode Island , Utah ,   Oregon ,   Massachusetts , and   Alabama  now have their own state's laws, and I am not sure what is happening there in terms of enforcement .  RRP has done one good thing, though.  It has encouraged contractors to review all of their business practices and make sure that their contracts protect them. Quite honestly, I tried to market my legal services to contractors reviewing their contracts a number of years ago.  I could not get anyone interested.  Business was booming and contractors had a backlog of work.  Then, two things happened.  The construction industry became one ...

Lead-based Paint Renovation , Repair and Painting Rule

The Renovation, Repair and Painting Program went into effect on April 22, 2010. Contractors were scrambling to become certified and make themselves familiar with the law's requirements. Now contractors are waiting to see if the law is going to be enforced and if companies will be fined for violations. It is my responsibility to read the law and to predict where the legal issues will arise so that construction companies can protect themselves.  It is time to start the new year right and have your contract reviewed for compliance with state and federal law with clauses that protect you and your business. By now, most contractors know that RRP applies to all pre-1978 homes where more than 6 sq. ft. of painted surface or 20 sq. ft. of exterior painted surface will be disturbed.  From the EPA: The Toxic Substances Control Act (TSCA) addresses lead-based paint hazards created by renovation, repair, and painting activities that disturb lead-based paint in target housing and ...

A Dog and a Truck, or Why RRP May Not be a Bad Thing

I spent the better part of 2010 learning about the EPA's Renovation, Repair and Painting (RRP) rule and helping contractors understand the law and protect themselves with well-drafted contracts.  I made more presentations than I can count to contractors and construction companies in the northeast, and I heard about their pain:  RRP compliance would cost them a lot more money.  Homeowners had not heard anything about the law and were appalled when they learned that their renovation projects would cost more.  Illegal contractors were undermining their ability to get jobs by failing to get certified and refusing to follow RRP. At the same time, however, I think that most contractors would agree that not just anyone should be able to call himself a contractor. Contractors should have training and experience.  They should know about OSHA and other safety regulations and use them.  As power tools have developed over time with more safety features built in, cons...

RRP and Individual Liabiliy

A number of months ago, when I was interviewed by NARI (National Association of the Remodeling Industry) radio, I was asked if a contractor could be held liable for he $37,500 fine per infraction, per day that can be enforced by the EPA for RRP violations.  It has taken me quite some time to get a clear answer to this question, but here is the response I received from the EPA recently: The Agency has always interpreted liability under TSCA ( Toxic Substances Control Ac t  of 1976)  to cover individuals, partnerships, corporations, government organizations, etc.  TSCA section 409 states clearly that it is unlawful for any person to fail to comply with any rule promulgated under TSCA Title IV.  Section 16 then says that any person who violates section 409 is liable for a civil penalty.  We have always interpreted "person" under TSCA to apply to both natural persons (individuals) and statutory or judicial persons (corporations).  Thus, any individual w...

Test for Lead, and Then You're Off the Hook?

I have run into so many contractors who think they can solve the dilemma of how to handle the RRP rule by having the house tested for lead.  There are now approved lead test kits out there.  All the contractor has to do is test, and if the house if negative, proceed with the work without doing the lead-safe practices.  That's it, right? Not so fast.  Consider the following scenario: Contractor tests for lead.  Negative result.  Four to twenty-one years later, the contractor is sued because a member of the household is suffering from lead poisoning.  Contractor contacts the lead test kit company (if it is still in existence).  How does the company respond?  Will they stand by their product?  Or, will they request documentation of all of the testing procedures including where the test was conducted, how it was conducted and verifiable results?  What if they say the testing was conducted improperly, or inadequately? Why face an a...

The Massachusetts Prompt Pay Law

The new MA Prompt Pay Law goes into effect on November 8, 2010.  It applies to construction projects of >$3,000,000.00 and effectively eliminates the use of "pay when paid" clauses for these projects. The law details the required payment schedules for General Contractors to Subcontractors to their subcontractors and so on.  There is a nice write-up about it at Massachusetts Real Estate blog:   http://www.massrealestatelawblog.com/massachusetts-construction-prompt-pay-law-passed/ Unfortunately it does not apply to most residential construction, whereas the prompt pay laws in some other states (such as Rhode Island) do apply.

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.