CHAPTER ONE - LICENSING
I. INTRODUCTION
II. OBTAINING A CERTIFICATE OF RESPONSIBILITY
III. EXEMPTIONS
IV. PENALTIES FOR NONCOMPLIANCE
A. Failure to Obtain a Certificate
B. Failure to Provide Notice of
Certificate
V. RESIDENT CONTRACTOR PREFERENCE
VI. USE OF RESIDENT LABOR ON PUBLIC WORKS
VII. CONCLUSION
CHAPTER TWO - BIDDING
I. INTRODUCTION
II. COMPETITIVE BIDDING
A. Private Projects
B. Public Projects
1. Construction
a. Bid solicitation
b. Bid selection
c. Unbalanced Bid
2. Leasing
3. Public Procurement Code
III. BID ERRORS
A. Enforceability of Bids
1. Contractor’s bid
2. Subcontractor quotations
3. Supplier quotations
B. Bid Mistakes
1. Mistake of fact
2. Mistake of judgment
3. Mistake of law
C. Relief from Bid Mistakes
1. Bid withdrawal
2. Bid correction
D. Post-Award Relief
IV. BID PROTESTS
A. Where to Protest
1. State Agency
2. Governing Authority
B. When to Protest
C. What to Protest
1. Certificate of responsibility number
2. Late bids
3. Bid responsiveness
4. Faulty solicitation
a. Experience requirements
b. Unduly restrictive of competition
(1) Brand name
“or equal”
(2) Proprietary, patented items
(3) Single base bidding
(4) Excessive bond requirements
V. CONTRACT AWARD
A. Public Projects
B. Minority Business
C. Private Projects
VI. DISCLOSURE OF BID INFORMATION
VII. CONCLUSION
CHAPTER THREE - THE
ARCHITECT/ENGINEER
I. INTRODUCTION
II. STATE LAWS GOVERNING THE PRACTICE OF
ARCHITECTURE AND ENGINEERING
A. Statutory Regulation of Architects
B. Statutory Regulation of Engineers
C. Associations of Architects and/or
Engineers
1. Architectural/Engineering Firms
2. Architectural Firms
3. Engineering Firms
III. OWNER-ARCHITECT/ENGINEER AGREEMENT
A. Types of Agreements
B. Limitation on Services
IV. ARCHITECT-CONSULTANT AGREEMENTS
V. THE ARCHITECT/ENGINEER’S RESPONSIBILITIES
A. Design
B. Bidding and Negotiation
C. Construction
1. Construction progress schedule
2. “Or equal” or substitution submittals
3. Review and approval of shop drawings,
product data and samples
4. Effect of architect’s review and approval
5. Architect’s shop drawing review/approval
liability
6. Delayed submittal review/approval
liability
7. Site Visits
a. Application for Payment Review
b. Changes
c. Contract interpretation/the Architect as
Judge
D. Closing the Project
1. Substantial completion
2. Punch Lists
3. Final Payment
4. Warranties
5. As-Builts
6. Year-End Inspection
VI. THE ARCHITECT/ENGINEER’S LIABILITY
A. Liability to the Owner
1. Exceeding Project Cost Limitations or
Estimates
2. Design Omissions
3. Inadequate Plans and Specifications
4. Inadequate Observation of the Work
5. Erroneous Certification of Payment
6. Erroneous Approval of Contractor’s Shopdrawings
and Submittals
B. Liability to the Contractor
1. Inadequate Plans and Specifications
2. Negligent Construction Administration
C. Liability to Subcontractors
D. Liability to Workers and Visitors
E. Liability to Users
F. Liability to the Surety
G. Liability to Adjacent Landowners
H. Liability for Willful Misconduct
VII. PROFESSIONAL LIABILITY INSURANCE
VIII.
CONCLUSION
CHAPTER FOUR - THE OWNER
I. INTRODUCTION
II. ADMINISTRATIVE RELIEF VS. BREACH OF CONTRACT
III. WARRANTY OF PLANS AND SPECIFICATIONS
IV. CONTRACT INTERPRETATION
V. DUTY NOT TO DELAY, HINDER OR INTERFERE WITH
THE
CONTRACTOR’S PERFORMANCE
A. Owner’s Expressed Duty Not To Delay
B. Owner’s Implied Duty Not To Delay
C. Specific Types of Owner-Caused Delays
1. Untimely issuance of notice to proceed
2. Failure to make the project site available
3. Owner’s interference with contractor’s
work sequence
4. Owner’s delay in acting on shop drawings
and submittals
5. Owner’s delay in design review
6. Owner’s delay in supply or removal of
materials
7. Owner’s issuance of unreasonable or
improper stop order
8. Owner’s excessive inspection and
unreasonable performance demands
9. Owner’s delay in issuing change orders
10. Owner’s failure to make progress payments
VI. OWNER’S MATERIAL CHANGE IN THE CONTRACT
VII. CONCLUSION
CHAPTER FIVE - THE
CONTRACTOR
I. INTRODUCTION
II. BIDDING
III. THE CONSTRUCTION CONTRACT
A. Integration Clause
B. Site Visit
C. Order of Precedence Clause
D. Permits and Fees
E. Owner’s Right to Carry Out the Work
F. Review of Contract Documents and Field
Conditions by Contractor
G. Compliance with Codes and Ordinances
H. Contractor’s Construction Schedule
I. Shop Drawings, Product Data and
Samples
J. Aesthetic Determination
K. Claims and Disputes
L. Differing Site Conditions
M. Changes in the Work
N. Time
O. Payments
1. Schedule of values
2. Progress payments
3. Punchlist
4. Retainage
5. Final payment
P. Insurance
1. Property insurance
2. Loss of use insurance
3. Comprehensive general liability coverage
Q. Statute of Limitations
R. Termination
1. Termination by contractor
2. Termination by owner
S. Attorneys Fees and Interest
IV. WALK AWAY CLAUSES
V. TAXES ON CONSTRUCTION
VI. CONCLUSION
CHAPTER SIX - THE
SUBCONTRACTOR
I. INTRODUCTION
II. BIDDING
III. SUBCONTRACTING
A. Scope of Work
B. Time
C. Payment
1. “Pay when paid” clauses
2. Prompt payment requirements
D. Contractor’s Warranty of Plans and
Specifications
E. Contractor’s Duty not to Hinder, Delay or
Interfere
F. Assignment of Subcontract
G. Arbitration
H. Subcontractor Claims and Disputes
I. Subcontract Changes
J. Hold Harmless and Indemnity Clauses
K. Insurance
L. Subcontractor’s Liability to Contractor
M. Termination
N. Attorneys Fees and Interest
O. Stop Payment
Notices
IV. CONCLUSION
CHAPTER SEVEN - CHANGES IN THE WORK
I. INTRODUCTION
II. CHANGES - WRITTEN VS. ORAL
A. Public Construction Projects
1. Written Change Directive
2. Oral change directive
a. Subsequent writing
b. Bad faith
B. Private Construction Projects
1. Subsequent conduct
2. Breach of contract
3. Implied Consent
III. CHANGES CLAUSE - HOW DO THEY WORK?
A. Agreed Changes
B. Construction Change Directive
C. Minor Changes
IV. WHO HAS AUTHORITY TO ORDER A CHANGE?
V. CONSTRUCTIVE CHANGE
VI. CARDINAL CHANGES
VII. DEDUCTIVE CHANGES
VIII. NOTICE
IX. CONCLUSION
CHAPTER EIGHT - DIFFERING
SITE CONDITIONS
I. INTRODUCTION
II. CONTRACTOR’S RIGHT TO RELY ON OWNER’S
REPRESENTATION
OF CONDITIONS
A. Duty to Investigate Site
B. Duty to Disclose
C. Disclaimers
III. NOTICE
IV. CONTRACTUAL REMEDIES
A. Type 1 Conditions
B. Type 2 Conditions
V. CHANGED CONDITIONS NOT COVERED BY THE
“CHANGED CONDITIONS” CLAUSE
A. Acts of God
B. Acts of Sovereign
C. Conditions Subsequent to Contract
D. Mississippi Law
E. Compensation
VI. CONCLUSION
CHAPTER NINE - DAMAGES AND
DELAYS
I. INTRODUCTION
II. THE OWNER’S DAMAGES
A. Contractor’s Defective or Incomplete
Performance
1. Insubstantial Performance
2. Substantial Performance
B. Contractor’s Late Completion
1. Liquidated damages
2. Actual damages
C. Emotional Distress
III. THE CONTRACTOR’S DAMAGES
A. Late Payment Damage
B. Termination Damages
C. Delay Damages
1. Owner-caused/compensable Delays
a. Direct job costs
b. Home office overhead costs
c. Inefficiency costs
d. Lost profits
2. Excusable/compensable Delays
3. Excusable/non-compensable Delays
4. Contractor-caused Delays
5. Concurrent Delays
IV. “NO DAMAGE FOR DELAY” CLAUSE
V. PREJUDGMENT INTEREST
VI. ATTORNEYS FEES
VII. MITIGATION OF DAMAGES
VIII. PUNITIVE DAMAGES
IX. CONCLUSION
CHAPTER TEN - BONDS AND LIENS
I. INTRODUCTION
II. BONDS
A. Federal Construction Bond
1. Notice requirements
2. Labor or material furnished in the
prosecution of the work
a. Labor
b. Material
c. Equipment
d. Furnished in the prosecution of the work
3. Interest and attorneys’ fees
4. Delay costs
5. Subcontractor vs. supplier
6. Date of last supply of labor or material
B. Mississippi Public Works Construction Bond
1. Labor and material
2. Delay costs
3. Attorneys fees
C. Mississippi’s Highway
Construction Bond
1. Claimants covered
2. Labor and material
3. Notice
D. Mississippi’s Private Works Construction
Bond
1. Labor and material
2. Profit and overhead
3. Attorneys’ fees and interest
III. LIENS
A. Construction Liens
1. Priority between lender and lien claimant
2. Entitlement to a construction lien
a. Contract with owner as agent
b. Contract with tenant or guardian
B. Stop Notices
C. Lis Pendens Notice
D. Wrongful Filing
IV. CONCLUSION
CHAPTER ELEVEN - EFFECTIVE COLLECTION TECHNIQUES
I. INTRODUCTION
II. COLLECTION STEPS
A. Carefully Select your Customer
B. Obtain Project Documentation
C. Properly Prepare the Schedule of Values
D. Promptly Apply for Payment
E. Demand Payment When Due
F. Repeatedly Demand Payment when Past Due
G. Stop Work
H. Demand Adequate Assurance
I. Contact an Attorney
J. File Suit
1. Federal court
2. State court
a. Justice court
b. County court
c. Circuit court
III. OPEN ACCOUNT CLAIMS
IV. BAD CHECK CLAIMS
V. COLLECTION ASSISTANCE
VI. BANKRUPTCY CLAIMS
A. Bonded Work
B. Projects Where Money is Held by the Owner
at the Time of Bankruptcy
C. Executory Contracts
D. Assistance of an Attorney
VII. CONCLUSION
CHAPTER TWELVE -
ARBITRATION, LITIGATION, OTHER
FORMS OF ALTERNATIVE DISPUTES RESOLUTION AND SETTLEMENT
I. INTRODUCTION
II. ARBITRATION
A. Arbitration Myths
B. Arbitration Realities
1. Electing to Arbitrate
2. Mississippi Laws Governing Arbitration
a. Initiation
b. Waiver
c. Appointment of Arbitrator(s)
d. Venue
e. Discovery
f. Hearing
g. Award
h. Reconsideration
i.
Court Review of Award
3. Modifying or Correcting an Award
4. Vacating an Award
5. Judgment
6. Appeal
C. Conclusion
III. LITIGATION
A. Pleadings
B. Discovery
C. Trial
D. Appeals
IV. OTHER ALTERNATIVE DISPUTES RESOLUTION
METHODS
A. Mediation
B. Mini-Trials
C. Summary Jury Trials
V. SETTLEMENT
VI. CONCLUSION
