Appendix A Check List: Practical Considerations

LibraryTurner on Illinois Mechanics Liens (2016 Ed.)
APPENDIX A - CHECK LIST: PRACTICAL CONSIDERATIONS

EDUCATING THE CLIENT BEFORE THERE IS A PROBLEM

A. Funding for the Job

1. Is there a construction loan and is it opened?
2. How are the funds to be disbursed?
a. By a title company?
b. By the lender?
c. By the owner or developer?
d. Through the general contractor?

B. Preconstruction Issues

1. Plans and Specifications
a. Do they include all that is required to complete the job?
b. Who is responsible for their completeness? Are they "scope" or "performance documents" leaving most of the responsibility for defining what is to be done to the contractor or subcontractor?
c. When are shop drawings and other submittals due, and what does approval of the documents by the architect or engineer actually mean?
2. Making sure there is a Legally Enforceable Contract
a. Does the client have a complete contract or only a letter of intent?
b. If there is no final contract, what kind of agreement is there covering work while the contract is being negotiated and finalized?
3. Reviewing the Contract or Subcontract
a. In General
(1) Is there a "flow down" clause?
(2) Who is responsible for plans and specifications?
b. Clauses Directly Affecting the Right to Payment
(1) "Pay if paid"
(2) Insurance and bonds
(3) The Integration Clause
(4) Pay out procedures
i. Certifications required
ii. Waivers and sworn statements
iii. When is payment due?
iv. Who
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