Orange County Business & Commercial Law Blog

From the snow-capped mountains in Shasta County to the golden beaches stretching south of Los Angeles, California has an undeniable allure that no other state can claim. Although the state is one of the largest in the country, many sections of it are suffering a housing crisis that is acute enough to make lawmakers in Sacramento and citizens everywhere reconsider housing laws.

A current debate is over whether to end the Costa Hawkins Rental Housing Act, which prevents cities from allowing rent controls on housing built after the law became valid in 1995. Berkeley is slated as the first to react to possible changes, allowing rent controls on housing after 20 years past its first residence certificate.

California may be more scenic without a huge construction industry, but the homes and infrastructure for millions of people depend on the workers and equipment that build and maintain them. Construction projects are often complicated and involve different specialties, so owners and developers rely on contracts to get people to work together.

Disputes can happen in construction contracts all the time, so many include clauses for how the signatories will try to resolve them. Although several disputes turn into lawsuits and see the inside of a courtroom, a large majority are sorted out before that would ever be necessary.

When you start any business, including a construction company or a supporting business, you need to know that you can fully trust your business partner. The relationship that the two of you have is critical to the success of the company.

How do you know if you can trust that person? Here are a number of warning signs to watch out for:

1. Your gut tells you that something is wrong. Listen to your instincts. Even if you can't quite put your finger on why you feel that way, you do not want to work with someone you cannot connect with.
2. Communication is difficult. If your partner does not talk to you often or delays communication, it can be a sign of some very serious problems to come.
3. They often fight with you over all sorts of minor details. You have huge decisions to make when running a business. This doesn't mean you always have to see eye-to-eye, but it's going to get exhausting if every single conversation turns into an argument.
4. They won't bring up the financial side of the business. Conversations about money can be uncomfortable, but they are critical in any industry.
5. They always pass the blame. When something goes wrong, your partner never accepts responsibility or apologizes. They just look for someone else to blame -- including you. People need to be able to learn from their mistakes, not pass the fault to others.

You want to start your own construction company. It is a dream you have had for a number of years now, and you are finally ready to make the transition from working for someone else to being in charge yourself.

While it is natural to assume that means you have to start from scratch, the reality is that you may be better off to buy a company that already exists. This is known as "entrepreneurship through acquisition."