Acknowledgments........................................................................
xvii
About the Author.............................................................................
ix
CHAPTER 1
LICENSING
A. RESIDENTIAL CONSTRUCTION
LICENSE. 1
1. Who is
Required to Have a Residential
Construction License. 1
2. How to
Obtain a Residential Construction License.
3
3.
Consequences for Violations of the Residential
Builders Act 3
B. ELECTRICAL LICENSE.
4
1. Who is
Required to Have an Electrical License.
4
2. How to
Obtain an Electrical License.
5
3.
Consequences for Violations of the Electrical
Administrative Act 6
C. PLUMBING LICENSE.
6
1. Who is
Required to Have a Plumbing License.
6
2. How to
Obtain a Plumbing License. 7
3.
Consequences for Violations of the State
Plumbing Act 8
D. ACTIONS FOR COLLECTION OF
COMPENSATION.. 8
CHAPTER 2
THE ARCHITECT/ENGINEER
A. STATE LAW GOVERNING THE
PRACTICE OF ARCHITECTURE AND ENGINEERING..
13
1.
Statutory Regulation of Architects.
13
2.
Statutory Regulation of Engineers.
16
3.
Exemptions. 18
4.
Penalties for Violation. 19
5.
Associations of Architects and/or Engineers.
20
B. TYPES OF
OWNER-ARCHITECT/ENGINEER
AGREEMENTS.
20
1. AIA
B101-2007. 20
2. AIA
B103-2007. 21
3. AIA
B104-2007. 21
4. AIA
B181-1994. 22
5. AIA
B188-1996. 22
6. B214-2007.
22
C. CLAUSES FOR ARCHITECT’S
CONTRACTS. 22
1. Scope
of Services. 23
2.
Inspection. 23
3.
Warranties/Guarantees. 23
4.
Submittals and Approvals. 23
5.
Compensation. 24
6.
Ownership of Plans. 24
7.
Mediation. 25
8.
Arbitration. 25
9.
Termination or Suspension.
25
10.
Professional Liability Insurance.
25
11.
Assignment 25
D. ARCHITECT-CONSULTANT AGREEMENTS.
26
E. ARCHITECT RESPONSIBILITIES.
26
1. Design.
26
2.
Bidding and Negotiation. 27
3.
Construction. 27
4.
Inspection. 29
5. The
Architect as Judge of Performance.
29
6. Review
of Applications for Payment
30
7.
Closing the Project 30
F. ARCHITECT/ENGINEER LIABILITY..
32
1.
Liability to Owner 32
2.
Liability to Contractor and Subcontractors.
33
3.
Liability to Workers, Visitors, and Users.
33
4.
Statute of Limitations/repose.
34
CHAPTER 3
BIDS AND BIDDING
A. PUBLIC PROJECTS.
37
1. What
Are Public Projects?. 37
2.
Negotiated Procurement 38
3.
Bidding Requirements and Bidding Statutes.
42
4.
Bidding and the Bidding Process.
70
5.
Bidders. 88
6.
Protesting the Award of Public Contracts.
93
7. Bid
Bonds. 95
8. Bid
Cancellation and/or Re-Solicitation.
98
9.
Re-Bidding abandoned contracts.
101
B. PRIVATE PROJECTS.
101
1.
Elements Common to both Private and Public Projects.
102
2.
Special Bidding Rules. 102
C. SUBCONTRACTS FOR PUBLIC AND
PRIVATE
PROJECTS.
103
1.
Procedures. 103
2.
Subcontractor’s Obligation to Stand by its Bid.
103
D. TYPES OF BIDS.
104
CHAPTER 4
CONSTRUCTION CONTRACT NEGOTIATION AND
FORMATION
A. PARTIES INVOLVED..
111
B. FORMING THE CONTRACT.
112
1. Types
of Contracts Available. 112
2. Offer
and Acceptance. 112
3.
“Competent” Parties. 123
4.
Consideration. 123
C. CONTRACTS FOR CONSTRUCTION
SERVICES
IN GENERAL.
125
1. Common
AIA Owner-Contractor Agreements and Forms.
126
2.
Important Clauses in the Owner-Contractor Agreements.
127
D. DISAVOWING THE CONTRACT.
137
1.
Mistakes. 137
2. Fraud.
137
3.
Misrepresentation. 138
4. Duress.
138
CHAPTER 5
CLAIMS
A. PRIME CONTRACTOR’S CLAIMS.
141
1. Delays
and Disruptions Caused by Owner
141
2. Unit
Price Claims. 146
3. Extra
Work. 148
4. Change
Orders. 151
5. Other
Contractor Claims. 155
6.
Recovery From Parties Other Than Owner
163
7.
Statutes of Limitations. 164
8.
Performance without Formal Contract
169
9.
Acceleration. 171
10. Late
Payments. 172
11.
Termination. 173
B. OWNER’S CLAIMS AGAINST PRIME
CONTRACTOR
AND SURETIES.
173
1. Delay.
173
2.
Defective Work. 178
3.
Liquidated Damages. 180
4.
Warranties and Guarantees.
182
5. No
Appropriate License. 183
C. RESPONSIBILITIES AND
WARRANTIES OF
AN ARCHITECT.
190
1.
Malpractice. 190
2.
Third-Party Tort Claims. 192
D. SUBCONTRACTOR CLAIMS.
193
1.
Privity of Contract 193
2.
Subcontractor Claims Against The Prime Contractor
193
3. Labor
and Materials Bonds. 196
CHAPTER 6
BUILDING CODES, STANDARDS AND PERMITS
A. INTRODUCTION..
205
B. PURPOSE.
205
C. APPLICABLE CODES.
205
1.
Commercial Properties. 205
2.
Residential Properties. 206
D. BUILDING PERMITS.
206
1. When
is a Permit Required?. 206
2. What
is the Process to Obtain a Permit
207
E. BUILDING INSPECTION AND
CERTIFICATE
OF OCCUPANCY..
207
F. PENALTIES FOR VIOLATION..
208
G. CONCLUSION..
208
CHAPTER 7
MICHIGAN CONSTRUCTION LIEN LAW
A. PUBLIC AND PRIVATE CONSTRUCTION
LIENS. 209
1. The
Statute. 209
2.
Definitional Background. 209
3.
Definitions. 212
4. Notice
of Commencement 216
5. Notice
of Furnishing (Required of Subcontractors
Suppliers and Laborers) 219
6. Claim
of Lien. 221
7. Effect
of Filing. 222
8. Sworn
Statements/Waivers of Lien.
222
9. The
Lien’s Duration. 227
10. Lien
Enforcement 230
11. Lien
Termination. 231
12.
Homeowner’s construction lien recovery fund.
232
13.
Condominiums. 234
14. Federal
Alternative. 234
15. Public
Projects (Michigan) 235
16. Michigan State Government
Projects.
235
17.
Michigan Department of Transportation Contracts.
237
18.
Building Contract Fund. 238
CHAPTER 8
ALTERNATIVE DISPUTE RESOLUTION
A. MEDIATION VS. ARBITRATION..
249
1.
Mediation. 249
2.
Arbitration. 249
3.
Advantages of Arbitration.
250
B. ENFORCEABILITY..
250
1.
Michigan State Law.. 250
2.
Federal Law.. 250
C. SCOPE OF ARBITRATION..
251
CHAPTER 9
ENVIRONMENTAL CONCERNS WHICH MAY
IMPACT CONSTRUCTION PROJECTS
A. INTRODUCTION..
253
B. LIABILITY OF OWNERS AND
OPERATORS FOR CLEANUP OF CONTAMINATED PROPERTY
253
1.
Liability Scheme. 253
2. Part
201 Liability Exemption. 255
3. CERCLA
Liability Exemption. 256
4.
Additional Obligations of Non-Liable Parties Unde
Part
201 and CERCLA.. 257
C. MANAGING HAZARDOUS SUBSTANCES
OR
WASTES ENCOUNTERED DURING
DEVELOPMENT/CONSTRUCTION ACTIVITIES.
257
1.
Hazardous Waste Regulation.
258
2.
Regulation of Underground Storage Tanks.
260
3.
Asbestos Concerns and Issues.
261
D. WATER QUALITY ISSUES.
265
1.
Stormwater 265
2.
Wetland Fill Permits. 266
3.
Additional State Regulatory Requirements.
267
CHAPTER 10
EMPLOYEE RELATIONS
A. LIMITATIONS OF ACTIONS AGAINST
EMPLOYERS. 271
1.
Difficulty Defending Suits.
271
2. Case
Law.. 271
3.
Practical Suggestions. 271
B. EMPLOYMENT LAW POSTERS.
272
1. Common
Problem.. 272
2.
Benefit to Employers. 272
3.
Posting at Corporate Headquarters.
272
4.
Postings Required. 273
C. PRE-EMPLOYMENT PHYSICALS.
273
1.
Potential for Discrimination Claims.
273
2.
Federal Contracts and Funds.
273
3.
Pre-Employment Physical Illegal
273
D. IMMIGRATION ACT.
274
1.
Coverage. 274
2.
Procedures. 274
3. Fines.
274
4.
Discrimination. 275
E. SEX HARASSMENT.
275
1.
Growing Concerns. 275
2. “Quid
Pro Quo”. 275
3.
“Hostile Work Environment”.
275
4.
Elements of Hostile Environment Case.
276
5. Some
Limitations. 276
6.
Case-by-Case Analysis. 276
7.
Safeguards. 276
8.
Complaint Procedure. 276
9.
Practical Suggestion. 277
F. OTHER HARASSMENT.
277
G. DRUG TESTING..
277
1.
Pre-Employment Testing. 277
2.
Elements Necessary for Successful Pre-Employment
Drug
Testing Policy. 277
3.
Testing Existing Employees.
278
4.
Drug/Alcohol Policy. 278
5.
Reasonable Suspicion Testing.
279