How can your construction business get paid during project suspensions and terminations? Learn all you need to know from a panel of experts today and check out the free resources below.
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-How does the Coronavirus impact construction businesses?
1. The supply chain will delay materials and jobs.
2. Quarantine of people will impact the ability for contractors to do work.
3. Wider economic and market challenges will affect housing market and construction spending.
4. Legal disputes and protections will pinch payment speeds.
-How can I protect myself and get paid on construction projects during the Coronavirus outbreak?
1. Stay current on COVID-19 public health orders.
2. Know your projects.
3. Protect your project security rights: Every single state has a mechanics lien remedy for private works. Fifteen states have a stop payment notice remedy.
4. Identify key contractual provisions, such as force majeure/uncontrollable circumstances clauses, notice provisions, change order provisions, limitation of liability, termination/suspension provisions, default/completion of work by others, etc.
-What are some special considerations to protect your project security?
1. Make sure you got the proper claim amounts with your lien or stop notes upon rights. Making sure that you're including the value of labor materials furnished to the project.
2. Gather relevant project and party information.
3. Make sure that you are enforcing your rights in a timely manner.
4. Think through how you're going to cease your activities. It's something you're going to talk to your counsel about in detail to make sure that we don't want to be the ones breaching the contract.
-What should I know about force majeure clauses?
1. Governing law and jurisdiction: Civil law implies force majeure in this contract. But under common law systems, it's not that way. If you don't have force majeure, you don't have force majeure.
2. Express terms of force majeure clause: What does your force majeure clause say? Does it protect you in a pandemic or epidemic like the Coronavirus outbreak?
-What are some of the force majeure provisions for suppliers?
1. It's important to know that your contract as a supplier doesn't just consist of a credit agreement with terms and conditions. You may have a master supply agreement. And in that case, the force majeure provision might be much more readily available. However, if you're doing business on a purchase order and an invoice basis, it depends on what your terms leadership say, what your customers terms and conditions say, and what's on the internet and online terms and conditions.
2. UCC generally governs disputes concerning materials. We have what's called a knockout provision, where the terms and conditions would cancel each other out of the purchase order and the invoice and you'd be stuck with whatever the UCC provides.
Levelset’s mission is to empower contractors to always get what they earn. Levelset’s products help millions in the construction industry each year to make payment paperwork and compliance easier, get cash faster, monitor the risk on jobs and contractors, and better understand payment processes and rules. The results are faster payments, access to capital, and fewer surprises. Backed by investors like Horizons Ventures, S3 Ventures, Altos Ventures, Operating Venture Capital, and Brick & Mortar Ventures, Levelset is headquartered in New Orleans, Louisiana, with offices in Austin, Texas, and Cairo, Egypt, and is over 200 employees strong. Learn more at www.levelset.com.
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