SLCRN’s 6th “Meet & Greet” Event

Behr, McCarter & Potter, P.C.

is proud to sponsor the

St. Louis Contractor Referral Network’s 6th

“Meet & Greet” Event Friday, June 1, 2012

Featuring the new RCGA President Joe Reagan

7:30 a.m. to 9:00 a.m.

Des Peres Lodge, 1050 Des Peres Road, Des Peres, MO 63131

(just off Manchester)

RSVP: jblanner@bmplaw.com

Mechanic’s Lien Statutes are Remedial in Nature and Should Be Liberally Construed; Mechanic’s Lien Take Precedence Over a Construction Loan

By W. Dudley McCarter

Altom Construction Company performed excavation work on a water park development near Hollister, Missouri.  Great River Engineering of Springfield provided design development plans and construction specifications for the civil design work on the project.  The developer of the project was Hollister Interchange Development Company (“HIDC”) and the lender was BB Syndication Services, Inc. (“BBSSI”).  When Altom and Great River were not paid for the work they did, they each filed mechanic’s liens against the property, naming HIDC and BBSSI, the mortgagee.  The trial court found that the mechanic’s liens were valid and were superior to the loan made by BBSSI.  On appeal, the Court of Appeals affirmed in Altom Construction Co. v. BB Syndication Services, Inc., No. SD 30966 (Mo.App. S.D. 2012).

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Getting Paid on Construction Projects

By Joseph C. Blanner 

In the current economic climate, getting paid for construction work can be difficult.  For this reason, one of the most frequent questions that I am asked is, “what steps can I take to maximize my chances of getting paid for my work”.  Here are some recommendations.   

1.         Know Who You Are Dealing With.  Many subcontractors and material suppliers are lured into a project with an unreputable contractor or owner with hopes of making a lot of money only to be disappointed when the extra profits are dwindled away by payment delays, attorney’s fees and various costs.  So, if possible, do a little research on the party you are dealing with and find out their reputation for timely payment, litigation, etc. before bidding the project.  If you decide to take a project with a contractor or owner with some blemishes on their record, make sure you factor into your bid extra amounts to cover your extra costs if you have any difficulty in obtaining timely payment. 

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Am I Entitled to Interest on Unpaid Amounts for Construction Work?

By Joseph C. Blanner

If you are not paid for providing work, labor or materials on a construction project, are you entitled to collect interest for the unpaid amount?  This is a question that I am frequently asked by our firm’s construction clients.

(1) Contractual Provisions:

InMissouri, you are entitled to collect interest at the rate specified by contract or statute.  To increase the likelihood that you will collect interest on unpaid amounts, we generally recommend that you include a provision in your contract documents that you are entitled to interest at a percentage agreed upon. Many of the construction contracts that I modify include provisions entitling the party to interest at the rate of 18% per annum or 1 ½% per month.  The percentage rate is a negotiable provision of the contract. 

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Statistics about the St. Louis Contractor Referral Network / LinkedIn

Total members in the St. Louis Contractor Referral Network:  2,546