Legal Question in Construction Law in California

Dear Homeowner: CAUTION, CAUTUION, CAUTION!!!

Here's a page from my professional notebook for your careful consideration. Good luck!

LEGALLY SPEAKING�...BEFORE YOU BUY, SELL, OR BUILD.

By: J. Norman Stark, ATTORNEY, ARCHITECT EMERITUS (OH) A.I.A., N.C.A.R.B.

There are potential economic risks in every real estate and construction project. WHETHER YOU BUY, SELL, OR BUILD, in any stage of evaluation, appraisal, purchase, funding, or improvement of real property, there may be physical or legal hurdles which must be addressed and resolved. The intricacies of purchase or sale require legal experience to guide the process, without risk or legal challenges. Similarly, in any construction project, no matter how small or large, technical and legal experience is essential to accomplish the goal of completion, on time, and within budget. In each and all of these individual tasks, the guidance and counsel of an experienced legal professional can make each stage of the process relatively free of needless safety violations, added economic expense, delay, and emotional involvement.

Not every business transaction may require the intervention of an Attorney. However, when a question does arise, the prudent individual should consult and retain experienced professional counsel, without delay. The legal professional, with specialized training and experience in real property (�real estate�) and construction, is already prepared to explain, advise, and provide important protection for the rights and best business interests of the client. With real property acquisitions and construction, one should be aware of the legal significance of specific provisions in Bids, Proposals, Letters of Intent, CC&R's - ("Covenants, Conditions, and Restrictions") on the use of real property. Other transactions may include terms controlling Commencement of Construction, Payment, Liens, and other significant milestones which, without legal counsel, could become economic millstones, delaying or even preventing completion!

Insurance and bonding have long been encouraged to protect the buyer-investor from imprudent and dishonest practices of predatory scoundrels; some in the construction industry, others in various other businesses. Such coverage, alone, may be inadequate or even denied in certain circumstances. Significantly, the specific terms of each policy or contract have legal significance, which may bind the endorsing individual (unwittingly) with personal liability!

Experienced legal counsel should be retained from the outset in each real estate and construction project, to provide sound preventive medicine for the owner / investor, or contractor. Experienced legal counsel can help you avoid costly mistakes; legal counsel doesn't cost, it pays.

�WHERE EXPERIENCE COUNTS, COUNT ON MY EXPERIENCE�.

J. NORMAN STARK, ATTORNEY*

ARCHITECT EMERITUS (Ohio) A.I.A., N.C.A.R.B.

1109 Carnegie Avenue (2nd Flr.) Cleveland, Ohio 44110

(216) 531-5310 Cel: (216)310-7100 Email: [email protected]

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*Author: The Construction Claims Investigation Worklist�

Artificial intelligence is no match for

natural stupidity.

Ancient Proverb

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It is impossible to tell you what to put in (or perhaps delete from) a construction contract without knowing what is (and isn't) already in it, as well as understanding the project to be built, project financing, etc. It would be foolhardy to build a $200,000.00 project without spending 1-2% or so of that budget on retaining a knowledgeable construction lawyer to review the contract and be on call for any legal questions that arise during the course of construction.