[RPPTL-constructionlaw] Lien Law Query FOLLOWUPCONSTRUCTIONDEPOSIT QUERY
Weintraub, Lee
LWeintraub at becker-poliakoff.com
Wed Aug 17 07:45:15 PDT 2011
The GC can still agree to pay the sub's mark-up per the agreed upon
contract between them. However, to avoid the risk of overpaying up
front and the sub not performing, the payment logistics can include the
GC paying the supplier for materials and paying the markup to the sub as
work is performed.
Lee A. Weintraub
Board Certified Construction Lawyer
Becker & Poliakoff, P.A.
Emerald Lake Corporate Park
3111 Stirling Road
Fort Lauderdale, FL 33312-6525
954.985.4147 Phone
954.985.4176 Fax
LWeintraub at becker-poliakoff.com
http://www.becker-poliakoff.com
Our clients' total satisfaction is our #1 priority. The Becker & Poliakoff Client CARE Center is available for questions, concerns and suggestions. Please contact us at 954.364.6090 or via email at CARE at becker-poliakoff.com.
-----Original Message-----
From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Gregory T. Elliott
Sent: Wednesday, August 17, 2011 10:31 AM
To: 'RPPTL constructionlaw'
Subject: Re: [RPPTL-constructionlaw] Lien Law Query
FOLLOWUPCONSTRUCTIONDEPOSIT QUERY
That (Lee) was the first thought that occurred to me, as I frequently
see
the sub and GC splitting the labor and services ("work") and the
materials
out of the subs bid/proposal these days simply because there is so
little
margin in any subcontract that most can't cash flow much of anything
these
days.
I presume the sub (in this instance) has put some markup on the
materials
which accounts for much if not all of any profit he built into his bids.
If
he gives up his supplier and the materials, unless the GC will let him
put
more money into the "work", he is probably making zero or losing on the
contracts.
Regards,
Gregory T. Elliott
ELLIOTT - BERGER, P. A.
10225 Ulmerton Road, Suite 4A
Largo, Florida 33771
(727) 360-2600 (Phone)
(727) 360-6588 (Fax)
Construction Law
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-----Original Message-----
From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Weintraub, Lee
Sent: Wednesday, August 17, 2011 10:11 AM
To: RPPTL constructionlaw
Subject: Re: [RPPTL-constructionlaw] Lien Law Query FOLLOW
UPCONSTRUCTIONDEPOSIT QUERY
Why not agree to have the general contractor pay the suppliers deposits
directly to the supplier?
"Croom, Janet" <jcroom at verolaw.com> wrote:
I have been requested to share with the group continuation of this lien
law query. (our fearless leader is one of the members requesting, and
so please use WWAD?! accordingly).
DEPOSIT Issue:
Cautious GC requested to pay deposit for materials by sub, allegedly
required by supplier/manufacturer, etc. GC inquires further of exact
amount of required deposit, as GC does not want to fund sub's
operational end of sub's business. Deposit amount allegedly required
then modified downward.
GC will pay deposit if required, but does not want to be left out
substantial amounts of "deposit" monies paid to a sub, if the sub
suddenly goes out of business/disappears. For example, GC uses sub on
15 projects, each requiring at least $50,000 deposit. GC does not
appear entitled to inquire as to relationship between sub and its
supplier/manufacturer. 713.16, Fla. Stat, etc. do not seem to address
this issue.
With the economy so tight in the construction industry, I am seeing a
shift in business to the requirement of many more "deposits" being
required. Shifting the risk of loss appears to be a bit more
complicated in the above scenario, and yet this is where the
construction trend appears to be heading.
Please delete if this issue does not relate to your practice.
Otherwise, please respond to the group with any practical or legal
remedies. Thanks-janet
Janet Carney Croom, Esquire
Board Certified - Construction Law
Board Certified - Business Litigation
Collins, Brown, Caldwell, Barkett & Garavaglia, Chartered
756 Beachland Boulevard
Vero Beach, FL 32963
Telephone: 772-231-4343
Fax: 772-234-5213
jcroom at verolaw.com <blocked::mailto:jburgess at verolaw.com>
http://www.verolaw.com <blocked::mailto:www.cbc at verolaw.com>
The information contained in this message is legally privileged and
confidential. It is intended only for the use of the individual or
entity named above. If the reader of this message is not the intended
recipient, any dissemination, distribution, or copy of this message is
strictly prohibited. If you have received this message in error, please
immediately notify the sender by via telephone, email, or the U.S.
Postal service at the address above, and destroy the message. Thank you.
Lee A. Weintraub
Board Certified Construction Lawyer
Becker & Poliakoff, P.A.
Emerald Lake Corporate Park
3111 Stirling Road
Fort Lauderdale, FL 33312-6525
954.985.4147 Phone
954.985.4176 Fax
LWeintraub at becker-poliakoff.com
http://www.becker-poliakoff.com
Our clients' total satisfaction is our #1 priority. The Becker &
Poliakoff
Client CARE Center is available for questions, concerns and suggestions.
Please contact us at 954.364.6090 or via email at
CARE at becker-poliakoff.com.
________________________________
From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Weintraub, Lee
Sent: Tuesday, August 16, 2011 12:02 PM
To: RPPTL constructionlaw
Subject: Re: [RPPTL-constructionlaw] Lien Law Query
If the material delivery is job specific, even if not shipped directly
to the job site, you need a release from the supplier. I would hold up
future payments to the sub until releases have been provided. I've had
situations before where contractors refused to provide releases and I
got them by drafting a dec action complaint (the contract didn't require
releases) saying 713.06's proper payment provisions contemplate
providing releases to the owner and the uncertainty about our
entitlement to demand releases supported a dec action. This has been a
fairly successful tactic, as everyone wants to avoid a lawsuit,
especially where the contractor can offer no legitimate explanation to
the court about why releases aren't being provided.
Click here <http://www.floridaconstructionlawauthority.com/> to
subscribe to our complimentary Florida Construction Law Blog.
<http://www.becker-poliakoff.com/> Lee A. Weintraub
Board Certified Construction Lawyer
Becker & Poliakoff, P.A.
Emerald Lake Corporate Park
3111 Stirling Road
Fort Lauderdale, FL 33312-6525
954.985.4147 Phone
954.985.4176 Fax
LWeintraub at becker-poliakoff.com
www.becker-poliakoff.com
Our clients' total satisfaction is our #1 priority. The Becker &
Poliakoff Client CARE Center is available for questions, concerns and
suggestions. Please contact us at 954.364.6090 or via email at
CARE at becker-poliakoff.com <mailto:CARE at becker-poliakoff.com> .
________________________________
From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Croom, Janet
Sent: Tuesday, August 16, 2011 11:54 AM
To: constructionlaw at lists.flabarrpptl.org
Subject: [RPPTL-constructionlaw] Lien Law Query
Query: Cautious GC wants to protect self/owner from material suppliers
claims. Subs request a deposit for materials they have to buy on a
project. GC wants release of lien from supplier. Some subs are
resisting furnishing a release of lien from supplier, either for deposit
or for full payment to suppliers. This issue comes up when suppliers,
in the ordinary course of business, do not ship material directly to a
specific job site at a specific address and do not have access to
information contained on a NOC. Ex: carpet supplier to flooring sub
who ships carpet to flooring sub under subcontractor order. I know the
basic law on this issue, but from a practical standpoint, are any of you
running into this type of issue, and if so, what resolution are you
working out for your GC/client? In compliance with WWAD?!, please email
me directly, and not "reply to all". Thanks!
Janet Carney Croom, Esquire
Board Certified - Construction Law
Board Certified - Business Litigation
Collins, Brown, Caldwell, Barkett & Garavaglia, Chartered
756 Beachland Boulevard
Vero Beach, FL 32963
Telephone: 772-231-4343
Fax: 772-234-5213
jcroom at verolaw.com <blocked::mailto:jburgess at verolaw.com>
http://www.verolaw.com <blocked::mailto:www.cbc at verolaw.com>
The information contained in this message is legally privileged and
confidential. It is intended only for the use of the individual or
entity named above. If the reader of this message is not the intended
recipient, any dissemination, distribution, or copy of this message is
strictly prohibited. If you have received this message in error, please
immediately notify the sender by via telephone, email, or the U.S.
Postal service at the address above, and destroy the message. Thank you.
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