Contractor Licensing, Lender Security, Bid Protests, and Placement of Bonds and Insurance: Perils to the Start of a Project
What lies behind the spate of licensing enforcement actions across the United States, and what can construction counsel do to address the problem? This article focuses on the serious consequences of starting work without a proper license and also addresses the similarly drastic impact on construction projects if the parties run afoul of lenders, sureties or rival bidders. Because several types of problems can stop construction projects in their early stages, we start by describing the hazards and why they pose a threat to the project schedule and to viability of the work. We also provide practical advice on how to get troubled projects back on course and some steps not to take. The legal issues raised by each danger represent distinct or even unique problems, and therefore we have analyzed each topic separately. Not surprisingly, in every case, the suggested best practice for avoiding the threat should provide the safest course for lawyer and client.
Read the full article: Contractor Licensing, Lender Security, Bid Protests, and Placement of Bonds and Insurance
