A contractor and construction lender were recently pitted against each other in a priority contest, and the lender won. The contractor filed suit in Indiana to collect what it was owed on a construction project from the owner. The owner had borrowed money from a bank to fund the construction project, and the loan was secured by a mortgage on the real estate. The mortgage was recorded before the contractor began work. When the contractor was not paid for its work, the contractor recorded a mechanic’s lien against the property. (more…)
Posts Tagged ‘construction projects’
A Financial Face-Off: Bank Loans vs. Mechanic’s Liens
Thursday, August 11th, 2011Limitations of Liability – Effective Risk Management
Friday, November 13th, 2009During these difficult economic times, general contractors, subcontractors, architects and engineers are spending extra time and effort in developing effective risk management strategies for their construction projects. An important contract risk management strategy available for these entities is the inclusion of a well drafted limitation of liability provision in all of their construction related contracts. (more…)