The construction lawyers at CMDA provide representation to builders and developers in all aspects of residential and commercial construction and development. In addition to handling community association and construction law.
On certain construction projects in the State of Michigan, owners require that contractors post performance and/or payment bonds. A performance bond is a surety bond issued most often by an insurance company or a bank to assure completion of a project by the contractor. A payment bond is a surety bond which guarantees that a contractor’s subcontractors and suppliers are paid for a project. CMDA handles all aspects of performance and payments bonds including negotiation, interpretation and litigation.
CMDA attorneys represent developers, homeowners, design professionals, contractors, suppliers and manufacturers involved in the construction of homes, residential developments, commercial and mixed-use properties and other construction projects, both private and public. CMDA attorneys work closely with clients in the construction industry to understand the operation and enforcement of the Construction Lien Law and the importance of timely attention to notices received from contractors, suppliers and others furnishing labor or materials or that provide certain professional services to real property.
CMDA attorneys work with our clients regarding proper procedures for payment to contractors; the responsibilities to subcontractors and suppliers; the impact of payment and performance bonds; the consequence of contractor liens and the perfection, prosecution and defense of construction liens.
If conflicts arise, CMDA’s highly-experienced construction litigators will work with clients to ensure compliance and employ dispute resolution strategies that are the most successful and efficient at every stage.
Construction and Design Defects
The Construction Law attorneys at CMDA are prepared to assist builders, developers and individual property owners with any issues relating to Construction and Design Defects. Claims for breach of contract, breach of warranty, fraud or negligence often result from defective design, materials or workmanship.
Construction defects arise from the deficient design of a structure or system results that makes it partially unusable, fully unusable or results in the creation of a safety hazard. Design defects often include poorly designed drainage, electrical systems, failing to account for site conditions, foundations, heating and cooling, plumbing, roofs, siding and trusses, among other things. The Construction Lawyers at CMDA are prepared to assist you with any construct defect claims that you have that result from design defects.
Construction defects can result from materials that fail due to poor product design, lack of testing and/or missteps in the manufacturing process. Poor product design and manufacturing errors often leads construction defects. Examples of common material defects include defective doors, shingles, siding or windows. The Construction Lawyers at CMDA are prepared to assist you with any construct defect claims that you have that result from design defects.
Poor workmanship is one of the leading causes of construction defects. Poor workmanship occurs when the builder fails to meet specifications such as building codes, contract specifications, design plans, industry standards or manufacturer’s specifications. Workmanship defects can also result from the use of materials that differ from the design plans.
The Construction Lawyers at CMDA are prepared to assist you with any construct defect claims that you have that result from defective workmanship.
Contract Negotiation, Preparation and Review
CMDA Attorneys will review, negotiate and prepare agreements with third parties, such as managing agents, service providers, real estate brokers and contractors, architects and project managers. CMDA Attorneys will also prepare, review and negotiate AIA agreements for projects.
Indemnification is the legal term of art that allows one part to shift the risk of loss to another party. In the context of construction claims, well drafted construction contracts well have some form of indemnification agreement that allocates the risk of loss with respect to property damage or personal injury between architects, contractors, engineers, laborers, and subcontractors. The indemnification agreement also typically sets forth the parties responsibilities with respect to defending claims, paying for attorney’s fees and costs in defending claims and pay any potential liability resulting from the claims. The Construction Lawyers at CMDA are prepared to assist you in a wide range of indemnification matters, ranging from proper contract drafting to litigating common law or contractual indemnification issues.
Insurance Coverage Disputes
Disputes regarding insurance coverage often arise in the context of construction related issues. Most general commercial policies that cover construction related issues, cover property damage and personal injury as these are defined as “occurrences” under the general commercial liability policy. Often times, insurance policies provide a specific exclusion that exempts defects in construction from coverage under an insurance policy. This is typically referred to as the “Your Work” exclusion.
Accordingly, CMDA’s construction attorneys assist clients in determining the appropriate level of insurance and potential areas that are not covered prior to entering into a major construction project. In the event that there is a dispute as to whether coverage exists under the policy, the construction attorneys at CMDA stand ready to assist you in resolving the same with your insurance carrier.