Why You Need A Legal Counsel Before You Start A Construction Business

Structural engineer and foreman worker with touch pad discuss, plan working for the outdoors building construction site.

Construction is not a comfortable industry to deal with. Besides the competition, you also have to deal with many legal matters and would need legal counsel even before you decide on the name for your future company. The requirements of the construction industry cause starting a business there quite a unique procedure. The continuance and development, additionally, of a construction business require even more legal specialists to enable you to navigate the industry smoothly.

Construction projects involve many professionals brought together with respect to the client’s needs and satisfaction. These can involve architects, engineers, designers, industrial equipment supplier, contractors etc. All these professionals have different requirements, which can lead to conflict when they cross each other. Therefore, it is crucial to have a construction lawyer to make sure this process is smooth.

Build a Legal Business from the Start

The state where you want to start your business usually have specific laws in place, in addition to the relevant regulations and standards in residential or industrial constructions. Therefore, you need different certifications, licenses, permits, and registrations which are all mandatory if you want to run a legitimate and also successful construction business.

Hence, you need to start your business with the right legal structure. This affects how you pay taxes among other liabilities. It will also affect the way you raise taxes. For instance, as a sole proprietorship you can’t sell stocks for the business so a business lawyer will guide you on the right structure to pick from the onset.

In most states, the legal aspects of starting a construction business are very complicated, and an attorney can help you make sense of all the work necessary to start your construction SME from scratch. In some states, you need special licenses to install the heavy equipment. In some states you need to present folders of paperwork to prove you have the authorizations and much more.

Identification of future risks and mistakes

Attorneys are trained to be one step ahead of the clients and enable them in avoiding potential pitfalls. Challenges in business are inevitable therefore seeking legal counsel prior to starting your construction business can help you navigate how to deal with cash flow hiccups, unreliable suppliers, non-serious workers etc. You essentially have a safety net that can cushion you in case of any unforeseen eventualities.

Drafting and entering into contracts

Construction is expensive and requires a significant investment. The projects also run on a strict program and need to be completed within a specific period. Therefore, you need to enter into multiple contracts with other parties. Failure to comply with the terms of the agreement can instigate civil or criminal action against the offending party. Proper legal counsel helps you in understanding your rights, obligations, and liabilities when you enter into agreements.

Conflict resolution

There can be a conflict between the employees and managers during the course of the construction project. The client can raise concerns with regards to the completion status of the project and many other conflicts that can arise on a day-to-day basis. However, what matters is how you deal with the conflict. An attorney can aid you in enforcing what was written in the contract and even to prepare notices and liens, which you can present to the party you agree with. Hiring legal counsel also guarantees you are compensated adequately for the work you have done.

Assistance with injury claims and labor disputes

One of the major risks associated with construction work is that your employees can get hurt at the site. You will be held liable for any worker who gets injured at your premise. Also, employees can seek legal action against you for unpaid labor and many more such problems may arise. An attorney can help you evaluate the available options to navigate you to choose the best possible solution.

Provision of insight on construction laws

Insurance laws, building codes, city ordinances, and land use regulations can be beyond your expertise. An experienced lawyer with a grasp of such statutory regulations is naturally better positioned to guide you with regards to compliance with the law. They also put you up to speed with labor safety laws, environmental policies etc. so you will don’t endanger your surroundings and employees.

Christiana Antiga

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