In January 2003 the Construction Contracts Act went into effect. The law provides for prompt payment by owners, contractors and subcontractors for construction work on private projects. The Act sets out payment procedures and notice requirements that parties involved in the construction process must follow. This seminar will teach you what you need to know about this new payment tool to ensure you comply with the Act and the consequences for non-compliance.
Mechanics' liens and payment bond claims have traditionally helped ensure that contractors, subcontractors, suppliers and design professionals get paid for their work. But, unless they understand the applicable laws and procedures, they will not be able to enforce their lien and payment bond rights. At the same time, owners, developers and lenders need to protect themselves from paying twice for the same labor and materials. Depending upon your role in the project, this seminar will give you a working knowledge of the procedures necessary to create and protect your payment rights or to defend your project and yourself against liens and payment bond claims. This course will help you:
- Use The Construction Contracts Act To Your Advantage
- Become Knowledgeable About The Importance Of Billing Cycles And Cash Flow
- Learn Practical Measures To Take Against Non-Payment Risks
- Identify Which Projects Are Lienable And What Items You Can Lien For
- Be Aware Of Obligations Created By Payment And Performance Bonds
- Learn About Additional Payment Tools
- Understand How Owners Should Respond To, Protect And Defend Themselves
8:30 a.m. - 10:10 a.m.
I. Construction Contracts Act
1. Legislative History/Overview Of Act
2. Billing Cycle
B. Subcontractor And Supplier Issues
1. Contractor – Payment Agent Of Owner
2. Subcontractor Notice Provisions
3. Potential 'Pay When Paid' Opportunities For Owner/Contractor
10:10 a.m. - 10:20 a.m.
10:20 a.m. - 11:30 a.m.
I. Construction Contracts Act (Continued)
C. Lender's Payment Obligations
1. Limits On Lender's Obligations
2. Lender's Notice Of Lending: Section 73 Of The Lien Law
3. Lender's Approval Of Change Order Work
E. Remedies For Nonpayment
1. Right To Stop Work For Nonpayment
F. Dispute Resolution Under The Act
11:30 a.m. - 12:30 p.m.
II. Accounting Issues
A. Billing Cycle And Cash Flow Concerns
B. Processing Change Orders
C. Practical Payment And Collection Considerations
12:30 p.m. - 1:30 p.m.
Lunch (On Your Own)
1:30 p.m. - 2:40 p.m.
III. Mechanic's Liens And Lien Law In New York
A. Private Improvement Liens
B. Public Improvement Liens
C. Distinguishing Public And Private Improvement Liens
D. Lien Foreclosure Actions
E. Defenses To Lien Foreclosure Actions
F. Trust Funds, Trust Claims And Trust Diversion Actions
2:40 p.m. - 2:50 p.m.
2:50 p.m. - 3:45 p.m.
IV. Payment Bonds
A. Miller Act
B. New York State Finance Law Section 137
C. Public v. Private
3:45 p.m. - 4:15 p.m.
V. Dispute Resolution
4:15 p.m. - 4:30 p.m.
VI. Questions And Answers