This afternoon, I had the privilege of presenting a comprehensive construction law seminar to more than 50+ construction businesses focusing on key aspects of New York Construction Law — Contracts, Mechanic’s Liens, Change Orders, Liquidated Damages, Delays, Cost Escalation, Public and Private Construction Projects, and winning strategies to ensure Timely Payment!
Construction contracts are the foundation of any construction project, as they establish the legal framework for the relationships and responsibilities of all parties involved—whether it be agencies, owners, general contractors, subcontractors, material suppliers, insurance companies, or sureties. It is crucial that these contracts clearly outline the scope of work, project timelines, payment terms, liquidated damages, change orders, and dispute resolution processes. By gaining a deeper understanding of these elements, construction companies can ensure that their contracts are legally sound and can help avoid potential litigation. Furthermore, if disputes do arise, companies will be better equipped to navigate and win in litigation by having precise and enforceable terms in place.
One of the most challenging and contentious issues in the construction industry is the timely payment for work completed, often referred to as the “Payment Games.” The construction field is notorious for payment disputes, and contractors frequently face difficulties in ensuring they are paid on time for services rendered. To address these challenges, New York law provides several legal protections to safeguard contractors and subcontractors from non-payment including the following: Prompt Payment Act, which mandates timely payments; Mechanic’s Liens, which allow contractors to secure payment by placing a lien on the property; Public Improvement Liens, designed to protect those working on public projects; and Payment Bonds, which ensure that subcontractors and suppliers receive payment. Understanding these legal tools is essential for construction companies to successfully navigate the complexities of payment in construction projects. By applying these protections, contractors and subcontractors can effectively secure their rights and ensure that they are timely paid for the work they perform, which ultimately helps maintain financial stability and project continuity.
The seminar provided invaluable insights into these legal principles and winning case studies, enabling construction businesses to better protect themselves and navigate the legal challenges of New York construction law with confidence and clarity.