Since there are numerous construction sites around the United States, it should come as no surprise that the value of all construction work is astronomical. In fact, recent estimates place the value at $2 trillion. To put that in perspective, that’s nearly 10% of the nation’s GDP. Due to the vast amounts of money that go along with any construction project, it’s crucial a construction site take various legal actions to ensure the company, its workers, and the project itself are protected. To learn more about this, here are five legal actions every construction site should take.
1- Hire an Experienced Attorney
For a construction site to know it is fully-protected from a legal standpoint, it should hire an experienced attorney who specializes in construction law. Since there are many aspects to any construction job that involve contracts, licensing, zoning, and more, having an attorney who understands these areas in great detail will be an advantage.
2- Obtain Workers’ Compensation Insurance
Due to construction sites being some of the most dangerous job settings in the U.S., a site should always make sure it has adequate workers’ compensation in place should a worker be injured. By doing so, a site can not only offer protection to its workers, but also avoid the chances of having a lawsuit filed against it in the future.
3- Understand the Contracts
In even smaller construction jobs, there are many contractual agreements for almost everything. Whether it is supplier agreements, contingency clauses should unexpected problems arise during the course of the project, arbitration clauses, or other areas, not understanding the nature and scope of contracts can prove disastrous from a financial standpoint. Since many construction contracts must be in line with state law where the site is located, failure to do so can sometimes result in the inability to be paid for the job.
4- Insure the Construction Equipment
Whether it is the dump trucks, bulldozers, or jackhammers and other power tools, a construction site should always ensure all equipment at the site has the proper insurance. Even at a small site, the equipment on hand can be valued at hundreds of thousands of dollars. Due to construction sites often being targeted for vandalism and theft, having all equipment insured will prevent many legal headaches should a theft or act of vandalism take place.
5- Have the Proper Licensing
To legally perform construction work, everyone involved must have the proper licensing to do various jobs at the site. Due to the requirements for such licensing being very strict, significant penalties can result if these details are not attended to prior to beginning the project. In fact, not only may your company lose out on getting paid, but you and your company may also face criminal charges for such violations.
By paying attention to the slightest of legal details regarding your construction site, you can avoid problems that you never foresaw happening. Whether it is an issue with licensing or having a client refusing to pay you for your work, placing a high priority on various legal actions can make a tremendous difference. Once you do so and begin to rely on the advice your construction law attorney gives you on various matters, you can gain peace of mind and see that your construction project is completed on time and on budget.