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By Contractors For Contractors!
  Some of the more common construction contractor oversights and mistakes

[Back to Page 7] - [Forward to Page 9]

Our website is designed to provide you with all the construction management solutions you need. Be sure to subscribe to our free newsletter and we'll keep you updated on happenings at our site, updates to our forms and ongoing news in the construction world.

Mistakes in Contracting: Some of the more common construction contractor oversights and mistakes
by Levy • von Beck & Associates, P.S.

1. Accepting a subcontract that references the main contract without actually seeing the main contract.

2. Not serving a preliminary notice on a project.

3. Not verifying the Owner, Lender and other information on the preliminary notices.

4. Assuming that the "lien preparation service" company you use guarantees their work in case of their own mistakes.

5. Not tracking the lien deadline and thereby allowing lien rights to expire.

6. Accepting a promissory note from a customer and releasing the lien claim.

7. Setting up one main account rather than individual job accounts.

8. Not having the project names printed onto the invoices by the computer. Instead, it is printed or typed in after the fact, if included at all.

9. Not verifying contractor license numbers. Not updating verification on contractor license numbers.

10. Giving a lump sum bid rather than listing out items and prices or per foot charges.

As some of you know, we (www.TheContractorsGroup.com) were once better known as "C and D Acoustics", a California licensed suspended ceiling construction company. I used to think that sending a prelien was just a simple task, even a no brainer if you will. ;)

After much reading, however, on exactly what a preliminary notice is supposed to do for me and, even more important, just how easy it is to lose my rights to payment if I don't do every part of this "simple task" absolutely perfect, I came to realize that perfection of lien rights is a much more complicated and time-consuming process than I am equipped for.

You can spend inordinant amounts of time researching and verifying just who needs to receive a copy of your prelien, and then still lose out in the end with just one typo or even one envelope misplaced by the USPS (which unfortunately happens all too often these days). ;)

Without a thorough understanding of the statutes (which changed TWICE in the year 2001 in California) and/or the "man"power and financial resources to spend the excessive amount of time required to insure that your prelien is prepared perfectly and delivered to the correct entities, you could lose all right to payment!

Be absolutely certain that you research your information carefully and/or hire a company to do this service for you.

Part 9 of this series takes a look at LienLawOnline, a valuable asset for your "library" of helpful sites



Part 1 - Process your California 20-Day Preliminary Notice or lose out on your lien rights!
Part 2 - Researching and verifying preliminary notice information
Part 3 - Software can help you process preliminary notices super-quick! <-- No longer available
Part 4 - Outsourcing your preliminary notices
Part 5 - Processing preliminary notices using the form available here
Part 6 - Don't let a slip-up at the post office cause you to lose your rights
Part 7 - Mistaken Identity - by Attorney Dave Barnier...
Part 8 - Some common mistakes you MUST avoid !!
Part 9 - LienLawOnline is a valuable asset to add to your library of helpful sites



Thank you for visiting our site. I hope that this series of articles is helpful to you! I'm always happy to receive feedback, so please do send me a note if you have anything you'd like to tell me. Thank you!! :)

Diane

 
 

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