Real Estate Development Law

Real Estate Development Law

Real Estate Laywer Park CityContracts are the legal basis for the Construction industry. Contracts are required to be highly detailed with all the required information to avoid any disputes that might delay the entire process of construction. A contract predominantly explains the completion of the project, when the payments should be done to the parties and when a party is in absence. It also expresses the intentions that concern each other’s rights and obligations concerning the project they are entitled to work on. A contract is typically used by parties to effectively allocate the risk factors among them. It is highly essential to know your contract terms and what your contract constitutes at all times. A written agreement of contract is a quintessential item to minimize any disputes. Agreements can vary in size from a single page to several elaborate pages of detailed information. Contracts are also available as forms over the internet or at your local stationery store. But one should exercise a high level of caution when entering into a standard form contract, since it may not contain all the required protections for your project. Institute of Architects (AIA), Associated General Contractors of America (AGC) and the American Society of Engineers (ASE) are considered to be reasonably fair and complete. Form contracts are unique since they are conceived by reputed experts from the construction industry. These contract forms enjoy a fair degree of judicial predictability since they are extensively used over many years and the various court interpretations, especially on the AIA forms. Our experts at Tesch Law Offices have a vast experience in assisting owners and constructions professionals to draft and review their contracts for successful projects.

Change Order

Change orders in construction contracts eventually find their way into the main contract as and when the required changes are necessary to be implemented into the existing project. This could also be done when there is a timing change or in the design-build of the process. A change order is the common method to amend the contract to account for and track the vital work changes in the existing project. The intent of the parties to make the necessary adjustments to the contract are identified by the change order and hence it becomes a part of the contract.

Mechanic’s Liens Assertion

Mechanic’s Liens assertion can be found in the Utah code as: “Contractors, subcontractors, and all persons performing any services or furnishing or renting any materials or equipment used in the construction, alteration, or improvement of any building or structure or improvement to any premises in any manner and licensed architects and engineers and artisans who have furnished designs, plats, plans, maps, specifications, drawings, estimates of cost, surveys or superintendence, or who have rendered other like professional service, or bestowed labor, shall have a lien upon the property upon or concerning which they have rendered service, performed labor, or furnished or rented materials or equipment for the value of the service rendered, labor performed, or materials or equipment furnished or rented by each respectively, whether at the instance of the owner or of any other person acting by his authority as agent, contractor, or otherwise.” Tesch Law Offices has experts who can guide you through all aspects of the mechanics liens. Some of the various professionals whom we have assisted are contractors, subcontractors, suppliers who take in payment for their work and owners who have been helped to defeat improperly asserted claims for payments and the required liens.

Surety Bond Issues

Surety Bond issues arises when the concerned construction project is not ‘bonded’ properly. Some of the most widely used bonds in construction are payment, performance, completion and bid bonds. All kinds of public work contracts require the contractor to post a payment bond in the state of Utah. The payment bond is the insurance for the government’s entities against the contractor’s inability to pay for the used labor, materials and the various equipment. Some government entities demand a completion bond to ensure the availability of funds to complete the project if the contractor falls short of completion. Experts at Tesch Law Offices are highly experienced in all the aspects of surety bond issues and have helped a wide array of subcontractors and suppliers to obtain their payment for their work. We have also represented sureties and contractors in the process of protecting the bond funds by ensuring strict compliance with the payment bond statutes and requirements.

Payment Disputes

Payment disputes are the most common complaint of subcontractors and suppliers who have contractors and owners failing to pay them on times. The State of Utah and Federal statutes strictly require the owners and contractors to make the necessary payments to their subcontractors and suppliers. The prompt payment act of Utah can be found in the Utah code Ann. § 15-6-1 et seq. Similarly the contractor licensing statutes requires the contractors and the subcontractors to be paid within 30 days of the receipt of payment. See Utah Code Ann. § 58-55-603.

Utah Construction Registry

Utah Construction Registry is a legislation that was passed by the Utah Legislature in 2005. It modifies the mechanics’ lien statute that requires the filing of notices on commencement, preliminary notices and completion notices for both residential and commercial projects, so that the lien rights are protected in an exclusive statewide electronic database named as State Construction Registry (SCR). It is a simple yet effective process of an online “bulletin board” which helps interested parties to identify those who provide labor and materials to a construction project and helps to minimize the risks. As defined in the law, the SCR was implemented in two phases: The 1st May of 2005 was the implementation for commercial and public work construction projects and the 1st November of 2005 was for residential construction projects.