Construction FAQs

Construction Frequently Asked Legal Questions

We have compiled a list of common legal questions from construction professionals. If you have additional questions or need legal representation for your firm, call us at 800-970-7071 today!

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Before you decide to buy or sell your construction business you must assess what the contemplated transaction entails:

What you are buying or selling and for how much: First figure out the Asset you are buying or selling a revenue stream, contacts or clients, know-how or intelligence, a recognized brand name, accounts receivables, short term versus long term contracts, depreciable furniture and equipment, and/or real estate. Conversely, one should evaluate the Liability or debt, accounts payables, and risk associated with purchasing or selling that asset. Additionally there is something completely intangible called “Goodwill”, stated in a simplistic manner it is the intangible factor of how “good” the business “will” run after the sale of business given the reputation, unique processes, uniqueness of the services, non-legally binding relationships, etc. Only through careful consideration and valuation, of each of these factors can one assess the essential value of the asset.

Purchase of Assets versus Corporations:

Asset - If one purchases an asset, then they are only purchasing the value of that asset minus any debt that comes with it. For example, if you decide to buy a machine valued at $5,000 and with it comes $3,000 of debt, then the net price for it should be $2,000. Determining the debt related to a specific asset is usually done through questionnaires, and searching mortgages and UCC statements.

Corporation - If one purchases a corporation, then the transaction needs much more due diligence and close attention has to be paid to disclosed versus undisclosed asset, such as good will, or liability such as a potential lawsuit due to past conduct. All facets of the corporation have to be evaluated, from leases, contracts, employees, revenue generating clients and contracts.

How to ensure a fair value for your business: Earn-out Provisions – Many times, if the Seller is willing to stick around after the sale and ensure that the Buyer is getting what the Seller said would be the business, one can use what’s called the earn-out provisions. The earn-out provisions is a pre-negotiated part and portion of a sale price that is contingent upon the outcome of certain results after and once the new owner takes over. Hence a buyer could promise to pay the seller, supposing $50,000 to be paid at time of sale, and $50,000 to be paid 1 year after the sale, provided that year over year the financial results are the same; the same scenario could also be done with a variable formula.

When you need the assistance in buying or selling your business, you will want the knowledge and experience of buying and selling businesses on your side, the ability to limit liabilities, the ability to secure your business without someone trying to take it. At The Mirza Law Group, LLP we represent Construction Contractors and Design Professionals, we help and strive to get our clients to that optimum position. Call us at the number on this page to discuss your purchase or sale of the medical business, and put our team to work for you.

Before you renew your general or professional liability insurance you really need to review your liability policy. You can start with the following three things:

  1. Persons or Types of Events Covered – Find out who it covers, and what the exclusions are.
  2. Types of Insurance Policies – There are two types of liability insurance policies, a “claims made” or an “occurrence made” insurance policy. The “claims made” policy covers the adverse event or occurrence if it occurs during the policy period and the claim is made during the policy period. The “occurrence made” policy covers the adverse event regardless of when the claim is made. To bridge the gap between one insurance company to another or one employer’s policy to another, “tail coverage” should be purchased from the latter carrier. The quality of financial strength should be A+ or better.
  3. Exclusions – Insurance is presumed to cover an event or occurrence, that is generally sudden and unexpected. Exclusions are usually special provisions of the insurance policy that insurance will not cover. Ask for your exclusions to the policy to be reviewed.

There are many other important insurance clauses such as defend and indemnify. Those clauses require a keen understanding of the law and your practice. At The Mirza Law Group, LLP we represent Construction Contractors and Design Professionals, we help and strive to get our clients to that optimum position. Call or email us at the number on this page and put our team to work for you.

Before you sign or renew your office lease agreement:

  1. Typical Standard Contract – When you hear people say “that’s the standard contract”, that should mean nothing to you. There is no such thing. All contracts are different, and all contain language that is unique to each vendor. If you are entering a lease, large or small, you should closely review your lease. Even a small $1,000/month lease can add up to be a $36,000 contract over just three years.
  2. Term Period – Find out what time period is the lease for, and how many renewals it has, with renewal and/or termination notice requirements. Most leases are for several years at a time. Many do not contain renewal clauses. Do you know what your rights and obligations are at the end of the lease? Renew or Vacate?
  3. Repair versus Maintenance – Commercial leases come in many forms. There is a difference in who is responsible for repairing versus who is responsible for maintenance. Many lessee’s are shocked to find out what they are responsible for and what their rights are under the lease.

There are many other important lease provisions such as default, termination, defend and indemnify clauses. Those clauses require a keen understanding of the law and your practice. At The Mirza Law Group, LLP we represent Construction Contractors and Design Professionals, we help and strive to get our clients to that optimum position. Call or email us at the number on this page and put our team to work for you.

The following are the list of licenses one can obtain as a contractor in Florida,

License Categories are:

  • Air Conditioning Contractor
    • Class A
    • Class B
    • Class C - Service
  • Building Contractor
  • General Contractor\
  • Internal Pollutant Storage Tank Lining Applicator Contractor
  • Mechanical Contractor
  • Plumbing Contractor (Plumber)
  • Pollutant Storage Systems Contractor
  • Pool/Spa Contractor
    • Class A - Commercial
    • Class B - Residential
    • Class C - Service
  • Precision Tank Tester Contractor
  • Residential Contractor
  • Roofing Contractor
  • Sheet Metal Contractor
  • Solar Contractor
  • Specialty
    • Drywall Contractor
    • Demolition Contractor
    • Gas Line Contractor
    • Glass and Glazing Contractor
    • Industrial Facilities Contractor
    • Irrigation Contractor
    • Marine Contractor
    • Residential Pool/Spa Servicing Contractor
    • Solar Water Heating Contractor
    • Structure Contractor
    • Swimming Pool Decking Contractor
    • Swimming Pool Excavation Contractor
    • Swimming Pool Finishes Contractor
    • Swimming Pool Layout Contractor  
    • Swimming Pool Piping Contractor 
    • Swimming Pool Trim Contractor
    • Tower Contractor 
  • Underground Utility and Excavation Contractor 

Continuing Education Requirement for General Contractors and Specialty Contractors is 14 hours board-approved continuing education completed each biennium prior to the renewal period for both certified and registered contractors. At least 1 hour must deal with workplace safety, 1 hour on the subject of worker's compensation, 1 hour on the subject of business practices, 1 hour on the subject of laws and rules and 1 hour on Florida Building Code advanced modules. More

Florida’s Contractor and Specialty Contractor categories include. License Categories are:

  • Air Conditioning Contractor
    • Class A
    • Class B
    • Class C - Service
  • Building Contractor
  • General Contractor\
  • Internal Pollutant Storage Tank Lining Applicator Contractor
  • Mechanical Contractor
  • Plumbing Contractor (Plumber)
  • Pollutant Storage Systems Contractor
  • Pool/Spa Contractor
    • Class A - Commercial
    • Class B - Residential
    • Class C - Service
  • Precision Tank Tester Contractor
  • Residential Contractor
  • Roofing Contractor
  • Sheet Metal Contractor
  • Solar Contractor
  • Specialty
    • Drywall Contractor
    • Demolition Contractor
    • Gas Line Contractor
    • Glass and Glazing Contractor
    • Industrial Facilities Contractor
    • Irrigation Contractor
    • Marine Contractor
    • Residential Pool/Spa Servicing Contractor
    • Solar Water Heating Contractor
    • Structure Contractor
    • Swimming Pool Decking Contractor
    • Swimming Pool Excavation Contractor
    • Swimming Pool Finishes Contractor
    • Swimming Pool Layout Contractor  
    • Swimming Pool Piping Contractor 
    • Swimming Pool Trim Contractor
    • Tower Contractor 
  • Underground Utility and Excavation Contractor 

Effective March 1, 2015 all professional engineers licensed in Florida will be required to obtain a total of eighteen (18) continuing education (CE) course hours in order to renew their licenses. These requirements are officially in effect for the 2015-2017 biennial renewal. Of the 18 hours, one (1) hour must be related to the laws and rules of professional engineers, one (1) hour must relate to professional ethics, and the remaining 16 hours can relate to any topic pertinent to the practice of engineering. Refer to Florida Statute Section 471.017(3) and Chapter 61G15-22. More

Each registered architect must complete 24 CEHs of educational instruction or training of study approved by the board or department prior to licensure renewal. The licensee must acquire the necessary hours the reporting cycle just ending prior to licensure renewal. Thus, when an architect renews February 28, odd numbered year, he/she will attest to completing 24 hours for the previous two calendar years, for a total of 24 CEHs upon renewal. Refer to Florida Statute Section 481.215(3), F.S. and Rule 61G1-12. More

For registered interior designers the Florida Board of Architecture and Interior Design recognizes continuing education for the sole purpose of building upon the basic knowledge of interior design, thereby increasing protection of public health, safety and welfare. Section 481.215(3), Florida Statutes (F.S.), requires interior designers licensed by the state to complete 20 hours of continuing education within a given biennial renewal period in order to renew a license. More