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Terms that cause misunderstandings in construction contracts

Professionals know the importance of solid contracts. Contracts establish the terms of the real estate deal, helping ensure that the transaction goes smoothly for all parties. Still, it seems that no matter how specific and legally solid the contract, there are bound to occasionally be contract disputes.

Many contract disputes arise when one or more parties misinterpret contract terms. These disputes can be long, time-consuming, and expensive. It behooves anyone in the real-estate industry to know the commonly misunderstood terms that lead to contract disputes.

Important information about the Florida real estate market

A NAIOP Commercial Real Estate Development Association survey found that Florida's commercial real estate sector added nearly $190 billion to the state's economy in 2017. That was the third-most of any state trailing only Texas and California. It was also third behind Texas and California as it related to commercial real estate spending at $99.3 billion. Florida also ranked highly in several other categories related to construction spending and economic impact.

The state was ranked second in the retail, entertainment and warehouse sector behind only Texas. It was also fifth in overall economic impact in 2017. Finally, the state ranked third in warehouse development and construction. According to a professor at George Mason University, construction spending increased 54.6 percent over a period from 2011 to October 2017. There was a 37 percent increase in construction spending for buildings used for nonresidential purposes.

The legal journey of a startup business

When you have the idea to form your own Florida business, you may not be aware of all of the legal details that can go into creating a corporation. For example, starting a company requires incorporation, with all of the documents and paperwork that are involved. There are different types of incorporation, and you may be unclear about which option is best for the enterprise you wish to build. For example, an entrepreneur may wish to look into the formation of limited liability companies, limited and general partnerships, S-corps and C-corps.

All of these different types of corporations have varying legal requirements and can provide founders with differing amounts of exposure to potential personal liabilities. The tax structure can also vary from one corporate form to another. By reviewing the requirements for each type of corporation, the attorneys at Southern Legal, P.A. provide reliable advice about the best type of corporate structure for your new venture.

Misunderstood terms in construction contracts

Having a solid construction contract in place is crucial for any project, small or large. Without a legally binding contract that clearly describes the terms and conditions of a project, both parties could face thorny legal issues. When so much time and money are at risk, it is crucial to have a detailed contract that will hold up in court.

But sometimes, one of the signatories will take issue with some part of the contract. Many contract disputes are caused by one party misunderstanding a certain term in the contract. These are a few of the most commonly misunderstood terms in construction contracts.

Arbitration can be a good choice for construction disputes

The construction business can be complicated, lucrative, and competitive. All too frequently, construction disputes arise between construction companies, contractors, property owners, or other parties. Frequently, the parties involved turn to alternative dispute resolution (ADR) or litigation for a resolution.

Arbitration and litigation both have their upsides and downsides. Every construction dispute is different, so the process through which to resolve it will be unique to the situation. Sometimes, arbitration is preferable to litigation. Litigation can be lengthy, expensive, and public - a trifecta that no company wants. In this post, we'll discuss whether arbitration could be the right option for your dispute.

A notice of claim must be treated as a "suit" in Florida

Builders in Florida scored a court victory against their insurers in terms of when the insurer must provide a legal defense against claims. A recent decision clarified Florida law regarding insurance contracts for builder.

The dispute revolved around claims against a general contractor of a condominium project. There were several claims for defects in the building. The contractor forwarded these notices of claims to its insurance carrier. However, the carrier refused to become involved because the claims were not a lawsuit as specified in the insurance policy.

Answers to some common business formation questions

Small businesses are the backbone of the U.S. economy. One impression readers might have from that statement is that it must be very easy to get a business up and running. But experienced Florida business law attorneys will surely agree that is not the case. There are layers of law – federal, state, county and municipal – and complications can surface at any one of them. Care in legal compliance is necessary from the outset.

Seasoned entrepreneurs might have something of an edge when it comes to their understanding of legal requirements. Newcomers to business, however, are bound to have questions. What follows are some of the most commonly asked questions and answers regarding legal aspects of business. It's not a comprehensive rundown.

Opportunity to recover lost payments for subcontractors

Many contractors in the construction industry complain about the difficulty of keeping their accounts receivable and payable in sync with one another. Accounts receivable cycles invariably lag behind accounts payable cycles. However, that is no excuse for subcontractors, suppliers and the like to not receive timely payment for goods and services rendered.

Placing a priority on preparation

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Fort Walton Beach, FL 32548

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