What Do I Need To Know About Construction Contract Agreements?
Video Summary
What do I need to know about construction contract agreements?
I am assuming you are talking about this from a consumer standpoint or an individual point of view.
The first thing you need to do is investigate who you are contracting with. You need to ask them for their license to make sure that they are properly licensed. You also need to make sure that they have the proper insurances if they are going to work on your property, and you might ask them for that.
You need to also say, “Well, could you give me the last three jobs that you worked on so I can contact those folks and get a reference?” You need to do due diligence with these contractors as far as getting references, as far as checking with the Better Business Bureau, contacting Consumer Affairs to see if they have any complaints, and just Google them to see what the other consumers say; I know that there are ratings there.
It is really critical for you to do your due diligence before you enter into a contract. I have a saying, “It is hard to make a good contract with a good player,” and that is where you are going to run into trouble. If the contractor is bad, well, you are not going to wind up with a good contract to begin with.
Also, you need to verify whether or not a building permit is necessary, and confirm that the contractor is going to apply for a building permit. This has to do with something as simple as replacement of windows or replacing air conditioners, and certainly as far as roofs are concerned. If a contractor does need a building permit, before they get the building permit they are going to need a Notice of Commencement, which you will need to sign. This will protect you under the construction lien statute.
The contract also should start with a deposit. You do not want to give the contractor too much money before he ever starts the work. He is going to want some money, and he may be ahead of you a little bit as far as the amount of work that he does versus the value that you have received. So, you need to break down the payments in installments, and certainly you need to reserve a final payment. The reason for this is if for some reason the contractor would not complete the work, you should have enough money – or almost enough money – to complete the work by hiring someone else, whereas if you have given all your money to the contractor up front and he then leaves, then you are in a bad situation and it will cost you to get someone else to finish it. It will cost you a lot more than you initially contracted for.
Also, the contract that you have with your contractor needs to not only break down the payments, but also provide that they will be giving you progress payment affidavits stating that they paid all of their subcontractors and material men before you give them the next draw. Therein lies the reason why you want to break down your payments into at least three installments.
Before you give the contractor the last payment, you need to be sure that he provides you with a contractor’s final affidavit saying that he has paid everyone. Once he gives you that, you can give him the final payment, provided you haven’t received any sort of noticed from any material men or anyone else who says, “Well, you need to make sure I get paid.” If you have, you need to require your contractor to give you a release from that subcontractor or material man that they used on the particular job.
These are some of the things that you need to look at in your contract. The other thing is that you need to put down a date by which all this work is going to be done. The contractors may have some problems with doing that as far as any penalties are concerned, but you definitely need to have a time period. I get calls all the time that “he started on this, and I haven’t seen him in six weeks,” or whatever. Something in the contract should say an outside date that this should be done. So, if the job should take 30 days, you say, “Well, if it is not done within 30 days then I have a right to terminate the contract if it is not done in 60 – or some outside date.” This is difficult to negotiate, but you don’t want to just leave it open as to when this contractor is going to come back.
Construction contracts are hopefully fairly detailed and may have certain provisions in there about effective workmanship, on how you are supposed to claim it before you can bring an action against your contractor – which is a losing proposition. Something you else you want to address in the contract is what kind of warranties you are going to have, and be sure you receive those before you give them the final payment. Don’t take “no” for an answer, and “I’ll get it to you later,” or whatever. Say, “No. I need that before I give you this final check,” and make sure that once the building permit is pulled – or you see the building permit – that the Building Department signs off on your building permit on the final inspection.
I am not sure that I have covered everything, but hopefully that gives you a running start at looking at entering into a contract to have construction work done on your home or your property. If you have any questions about it or need some help with it, give me a call at 727-847-2288.
- Published in Real Estate, Videos
Ask Jaleh: Who Controls the Money In A Special Needs Trust?
Video Summary
Who controls the money in a supplemental or special needs trust?
Perhaps the most important consideration for an SNT is the selection of a trustee. The trustee of the special needs trust is critical to the successful achievement of the goals and objectives of the special needs trust.
First, the trustee should never be the beneficiary of the special needs trust, or the beneficiary spouse, because of the control and the deeming factors. The trustee should be someone who is experienced with financial matters, or who is capable of retaining the appropriate financial expertise to assist in the management of the assets in the special needs trust.
The trustee must have the time and be willing to exert the effort to become acquainted with and maintain current knowledge of the needs of the beneficiary. And, very importantly, the requirements of the public benefits programs for which the beneficiary of the special needs trust is eligible.
Often, especially with a supplemental needs trust, it is advisable to name co-trustees. One co-trustee could be a corporate trustee, and the other could be a family member or close friend who has frequent contact with the beneficiary of the special needs trust.
Whether co-trustees, a single corporate trustee, one or more individuals are appointed as trustee, consideration should be given to the use of a care manager. The special needs trust can provide that a care manager be hired by the trustee of the special needs trust, to provide the constant contact with the beneficiary necessary to become aware of the beneficiary’s personal needs. And then they can communicate that information regularly to the trustee.
The grantor of the special needs trust can also use a memorandum of instruction, or other similar type of document, to communicate the various personal information about the beneficiary of the special needs trust. Such as the beneficiary’s favorite color, favorite food, likes, dislikes, medications, and other important information regarding the beneficiary.
The special needs trust should include terms that prohibit the distribution of any trust asset for anything provided by the public benefits programs for which the beneficiary of the special needs trust may be qualified. If the trustee conscientiously complies with those provisions, the special needs trust assets will not be deemed to be owned by the beneficiary of the special needs trust, and will be available to use in the trustee’s discretion for other needs of the beneficiary of the trust.
Another common provision for a supplemental needs trust is allowing the trustee to make payments that could possibly disqualify the beneficiary of the trust for some government benefits, if the trustee decides that it is in the best interest of the beneficiary. For example, the trustee may use the special needs trust funds to purchase a house on behalf of the beneficiary. This would cause a reduction in the beneficiary’s social security income stipend, because it is considered a shelter expenditure. However, if the beneficiary of the special needs trust has housing needs that exceed the government benefits, it is in the beneficiary’s best interest to use the trust funds for better housing.
Special needs trusts are commonly used to provide the beneficiary with specially equipped vehicles, concert tickets, transportation tickets, dental work – these things are not covered by Medicaid or other public benefits programs. They could also be considered to be used for things such as the theater, performing arts admission tickets, computers, and other electronic devices such as televisions, iPads, and anything that would be necessary to the benefit of the beneficiary of the special needs trust.
With a third party special needs trust, the grantor has the right to designate, in the special needs trust document, who will be the beneficiaries of the trust upon the death of the primary beneficiary.
In conclusion, special needs trusts, whether third party or self-settled, are valuable tools for beneficiaries who are disabled or have other special needs.
If you’re interested in setting up a special needs trust, please contact me at Waller and Mitchell, at 727-847-2288.
Do I Need A Lawyer For A Will?
Video Summary
Do I need a lawyer for a will?
Yes, you should use a lawyer to prepare your will. Each state has different laws as far as how the will is to be signed, so there’s a certain formality involved as far as signing a will. In Florida, it requires that the will be signed in the presence of two witnesses, and the person who executes the will. And if it is not, and if both parties are not present, then the will can be challenged and is ineffective.
Also, there are certain provisions in a will that you would want to consult with a lawyer – besides the particular language, as far as paying your bills – as far as what property you want to go to what particular person. It’s not a particularly good idea to try and designate a beneficiary for each one of your assets, since those assets are fluid and you don’t know what assets you’ll have at the time of your death.
So, it is my suggestion, whenever I take information to prepare your will, that you allocate it into shares or percentages for the particular beneficiaries. If there’s a particular grandchild or person that you wanna leave a specific sum of money, well, we can designate that.
It’s also important to know or consult with a lawyer as far as devising your home or your homestead property. And there’s certain constitutional provisions which does not allow you to leave your house to anyone you want, if you’re married or if you have minor children.
So, if you’d like to have a will prepared, give me a call. I’ll be glad to give you a quote for preparing the will. Also, there’s other documents that I will talk to you about whenever we do your estate plan, such as a living will which states your dying declaration as to whatever circumstances you want life support to be discontinued.
Also, a healthcare surrogate, which is a healthcare power of attorney form where you’re designating someone to make healthcare decisions for you if you’re unable to do so. And, also, a durable power of attorney which appoints an agent to be able to sign on your behalf. And the durable power of attorney is effective even if you become incapacitated, and may avoid having to set up a guardianship.
So if you would like to do some estate planning, giving me a call at 727-847-2288.