People in the construction industry in California may have found themselves a bit busier now than they have been in recent years, as new projects and new opportunities seem to be coming around after a long-dormant period of economic recession. The good news is that this optimistic outlook appears to be widespread, and hopefully will translate to continued economic success in several major California markets in the coming years.
According to a recent study conducted by the UCLA Anderson School of Management, forecasts for commercial real estate, multifamily housing, industrial space and warehousing are all on the rise, with many survey participants reporting a large uptick in demand. I
n Southern California, just about half of all those developers surveyed said they had begun a project in the last year, while even more said they plan to begin a development in the next 12 months. With the increased need for major housing, commercial and industrial property developments, people in the California construction business could be in for a busy year.
One common problem construction businesses experience is trying to bite off more than they can chew. Nobody wants to ever turn down a potential project opportunity, but construction outfits should never jump into a project without first doing their due diligence.
In a rush to meet demands and keep the wheels churning, it can be easy to overlook some of the most important documents and contractual issues that are essential to a successful project. Legal documents, contracts and agreements with subcontractors, developers and architects as well as employees must be scrutinized for sufficiency.
Contractors who fail to protect themselves may run into far bigger problems and costly litigation if they neglect to take care of these basics. Those seeking legal guidance and consultation amid burgeoning demand should consider seeking legal advice for additional information about their situation.
Source: Globe St “CA Recovery Reflected in Optimism, Construction,” Natalie Dolce, Jan. 28, 2015