The construction industry in Southern California is a fast-paced, often cut-throat environment, and savvy construction business owners are always looking for ways to get a competitive edge over others in the field. In good times, there is plenty of work to go around, and new construction businesses are eager to expand, start up or branch out. They also need guidance on the legal aspects of business formation. Whether it is a general outfit or a specialized niche firm, construction companies need legal guidance and execution that puts them on the road to stability and success.
People in the construction industry know that many of the most important deals that they ever make are based primarily upon a handshake. Trust is the foundation of success in the California construction industry and even though most people would never intentionally put that trust or their reputation in question, a deal that simply sealed by a handshake leaves a lot to be desired, in that it leaves open a lot of questions that could become the basis for a lawsuit.
For people in the fast-paced construction industry in California, the saying "time is money" has never been more true. Small construction firms in California have to juggle many different duties just to stay on top of their projects, bids and other business matters, so nobody has time for getting dragged into court for litigation. Moreover, when the issue at hand is a contract dispute, the contract itself may not be able to quickly or simply solve the problem. For this reason alone, the time, hassle and expense of going to court can be a major burden for construction businesses, which is why they may try to avoid litigation wherever possible.
People in the construction industry know that some disagreements and misunderstandings are an inevitable part of almost every single project. In a complicated construction project, architects, contractors, subcontractors and other parties are all expected to speak the same language and hold up their end of the bargain, but when something goes wrong, each party scrambles to protect themselves from liability. Whether it is a design flaw, construction defect, delay or failure to perform, contract disputes happen, and when they do, these parties need to reach a solution. Sometimes that solution isn't possible without litigation or arbitration, but before things every get that far, it's important that contractors protect themselves by drafting and executing good contracts.
Contractors in California have to work hard to obtain their licenses to conduct business, and in many ways this license is absolutely critical to most contractors' ability to continue to perform and be compensated for future work. Just obtaining a license from the Contractors State License Board (CSLB) can be a complicated endeavor, but it doesn't end there. Contractors in California need to take proactive measures to protect their licenses against claims, complaints and allegations from clients, otherwise they could lose the very thing they've worked so hard to achieve.
People in the construction industry in California know that the old axiom "time is money" is absolutely true when there are construction deadlines to meet, subcontractors to pay and laborers to put to work. In an ideal world, construction litigation would be decided quickly, cheaply and even-handedly, but we all know that the current state of affairs in the legal system is nowhere close to this.
People in California may have seen an interesting editorial article on the issue of skilled construction labor, which is central to the success and productivity of many construction firms. As demand for new construction continues to rise, some players in the industry say they are having a tough time finding and retaining qualified employees.
Many people in California think that taking legal action necessarily means dragging the issues before a judge, going through lengthy depositions, undertaking a time-consuming discovery process that can take months, and hiring expert witnesses to testify on an issue before the court. As an alternative to litigation, people dealing with contract disputes should consider mediation.