Frequently faced Legal Issues in Construction Industry

Frequently faced Legal Issues in Construction Industry - Interview


Vincent T. Pallaci is a renowned law practitioner in Greater New York area believes common legal issues in the construction sector are very much important. He feels if the contractors fail to pursue the bond documents, a horrible results would wait for them.


Mr. Pallaci is the managing partner of the New York law firm of Kushnick Pallaci PLLC where he looks after the operations as well as observes all construction litigation.


He is expert at prosecution and defense of defective construction claims; prosecution and defense of construction stoppage and delay claims; making and filing mechanic's liens; prosecuting and defending mechanic's lien foreclosure actions; payment bond claims; performance bond claims; resolving ECB violations.


Mr. Pallaci holds the highest possible "AV Preeminent" rating from Martindale Hubble, is familiar as a "Top Construction Attorney" by AVVO and has been recognized as a "rising star" by Super Lawyers magazine in 2012, 2013 and 2014.


In a recent free-wheeling interview with made some valuable points for construction industry.


Here are the details:


What are the most common questions/concerns/problems your clients come to you with?


Unfortunately, construction is an industry that kind of lends itself to problems popping up. Three of the most common issues, in no particular order, are:


  1. Defective construction
  2. Delayed construction
  3. Payment disputes


How do you advise them on these issues?


Each situation is different, but it is always best to get out ahead of the problem to the extent that you can. Dealing with issues proactively rather than reactively allows you to control the situation and hopefully mitigate any losses.


What are some best practices you'd like to see your construction industry clients adhering too more often when it comes to how they do business?


Many problems in construction are the result of poor communication. Improving communication between the owner, contractor, subcontractors and design professionals is a good start towards eliminating (or at least reducing) problems on the project. One big part of communications is clearly relaying directives on changes. All changes should be in writing and signed by the parties.


How do you advise your clients on shopping for and buying surety bonds?


First, we tell clients to read what they are signing. They need to know what type of bond they need, what they want and what they are getting. They also need to understand how premiums are calculated, whether there are minimum premiums and whether they are personally guaranteeing any obligations.


What are the advantages of being a bonded contractor?


Some jobs, especially public jobs, will require a bond. But even in the commercial arena, more owners and developers are asking for bonds. Being able to market yourself as holding bonding capacity is always a good thing and gives potential customers a little bit of comfort.


When would a contractor/construction company need the help of a surety attorney?


Attorneys should be involved from the beginning to review bond applications and discuss them with the client and surety. After that, the attorney should stay involved with any issues relating to the bond - especially when any claims or possible claims become known.


The Expert Interview opinions are absolutely personal by interviewees only, thus Cost Estimation Journal is not liable to take any responsibility here.

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