Escolar Documentos
Profissional Documentos
Cultura Documentos
INTERIORS
AND FINISHES
15 New Products
for Interior Design
and Construction
CAM Launches
Construction
Industry
Roundtable
Series
CAM Government
Affairs Committee
Update
Interview with
Michigan Senator
Mike Kowall
CONSTRUCTION
LAW
Indemnity Rights
and Obligations
Lien, Bond and
Trust Fund Statutes
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12 SUSTAIN | ABILITY
Thermal Imaging for
Energy Loss Detection
CONSTRUCTION HIGHLIGHT
14 CAM Successfully Launches
Construction Industry Roundtable Series
18 Government Affairs
Committee
Legislative Update
20 Senator Mike Kowall:
Making Business Happen
CONSTRUCTION LAW
DEPARTMENTS
22 Managing Your Companys Indemnity
Rights and Obligations
26 Time to Update and Conform
Construction Lien, Bond
and Trust Fund Statutes
4 CAM MAGAZINE AUGUST 2014
8
9
11
43
46
46
46
Industry News
Safety Tool Kit
Marketing on the Level
People in Construction/Corporate News
Construction Calendar
Welcome New Members
Advertisers Index
WWW.JAIMESIND.COM
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PUBLISHER
EDITOR
Kevin N. Koehler
Amanda M. Tackett
ASSOCIATE EDITOR
Mary E. Kremposky
PRODUCTION DIRECTOR
GRAPHIC DESIGN
DIRECTOR OF MARKETING
ACCOUNT EXECUTIVE
Matthew J. Austermann
Marci L. Christian
Gregg A. Montowski
Cathy A. Jones
DIRECTORS
OFFICERS
Chairman
Eric C. Steck
Amalio Corporation
Vice Chairman
Todd W. Hill
Ventcon, Inc.
Vice Chairman
Mary K. Marble
Marble Mechanical, LLC
Treasurer
President
Kevin N. Koehler
DIRECTORS
Stephen J. Hohenshil
Glasco Corporation
Brad Leidal
Leidal & Hart Mason Contractors, Inc.
John Raimondo
Roncelli, Inc.
John W. Rieckhoff
C.L. Rieckhoff Company, Inc.
Kevin F. Ryan
Powerlink Facility Management Services
Preston Wallace
Limbach Company, LLC
Donielle Wunderlich
George W. Auch Company
Gary Boyajian
Division 8 Solutions, Inc.
Stevan Bratic
Bratic Enterprises, LLC
Marty Burnstein
Law Office of Marty Burnstein
George Dobrowitsky
Walbridge
Daniel Englehart
Peter Basso and Associates, Inc.
Chris Hippler
Capital Letters
Dennis King
DMKING Consulting, LLC
Nancy Marshall
Aluminum Supply Company
Rick Rys
Hi Def Color
James Vargo
Capac Construction Company, Inc.
CAM Magazine (ISSN08837880) is published monthly by the Construction Association of Michigan, 43636 Woodward Ave.,
P.O. Box 3204, Bloomfield Hills, MI 48302-3204 (248) 972-1000. $24.00 of annual membership dues is allocated to a subscription to
CAM Magazine. Additional subscriptions $40.00 annually. Periodical postage paid at Bloomfield Hills, MI and additional
mailing offices. POSTMASTER, SEND ADDRESS CHANGES TO: CAM MAGAZINE, 43636 WOODWARD AVE., BLOOMFIELD HILLS, MI 48302-3204.
For editorial comment or more information: magazine@cam-online.com
For reprints or to sell CAM Magazine: 248-972-1000
Copyright 2013 Construction Association of Michigan. All rights reserved. Reproduction in whole or part without permission is prohibited.
CAM Magazine is a registered trademark of the Construction Association of Michigan.
M
Michigan
gan Regional
Reg nal Coun
Co
Council
ncil
of
C
Carpenters
ers
rs and M
Mil
Millwrights
lwrights
Carpente
Millwr
ghts
Ser
Serving
rvi
ving
n the Co
Community
ommunit
ty
y
Building
B
g a Stro
St
Stronger
rong
ger Michigan
gan
M
Michael
Jackson
Jackso
on
Executive
E
xecutive Secreta
Secretary/Treasurer
tar
ry/
y
y/Treasurer
Bart Nickerson
Pre
President
hammer9.com
ha
h
a mmer9
er
r9.com
INDUSTRY NEWS
By Tracey alfonsi,
DirecTor of
eDucaTion &
safeTy services
INDUSTRY NEWS
recogniTion awarDs
Gold Medal Award
Glen LeRoy, FAIA
Robert F. Hastings Award
Kirk Delzer, AIA
President's Award
Dan Pitera, FAIA
BuilDing awarDs
inTerior awarDs
Zola Bistro
PLY Architecture
M@dison Building
Neumann/Smith Architecture
sTuDenT awarD
AIA Fellow
Celeste Allen Novak, FAIA
Adam Cook
University of Detroit Mercy
25 year awarDs
SINCE
S
INCE
1979
Birmingham Residence
Luckenbach/Ziegelman, PLLC
Palace of Auburn Hills
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Ghafari is AIA
Michigan Firm of the
Year
Ghafari Associates, Dearborn, is pleased to announce that it
has been named the 2014 Firm of the Year by the American
Institute of Architects (AIA) Michigan. Ghafari was presented with
the recognition at the annual AIA Michigan Honor Awards
celebration on June 7, 2014. The Firm of the Year Award
recognizes an organization of architects that has consistently
produced distinguished architecture for at least 10 years. The firm
must have great depth and breadth and be widely known for
quality work that is the product of a collaborative environment.
We are honored to be selected as Firm of the Year by AIA
Michigan. This recognition honors the hard work and talents of
not only our architects, but the firm as a whole, said Chairman
and Founder Yousif B. Ghafari.
Originally founded in 1982 as a four-person CADD operation
in Livonia, Ghafari Associates has developed into a full-service
architecture, engineering and consulting firm with nearly 400
employees worldwide. Ghafari has contributed to the architectural
profession over the past 32 years, providing programming,
planning, management and design services for projects ranging
from small renovations to new multi-facility complexes for clients
in the automotive, aviation, commercial, education, energy, food,
government / institutional, healthcare and industrial /
manufacturing markets.
Since its founding, Ghafari has developed a reputation for
innovation in its industry, rooted in an unwavering commitment
to client service and efficiency in project delivery. Whether it is
through the adoption of a new technology, design technique or
delivery method, the firm is guided by a drive to serve its clients
more effectively. This focus permeates all areas of its business,
incorporating its full array of facility and process design
capabilities combined with advanced technological tools,
sustainable practices and lean principles.
Is Inbound
Marketing Right for You?
By Chris Hippler, President, Capital Letters
Inbound marketing has revolutionized the field of marketing. Since 2006 it
has been the most effective marketing method for doing business online.
But how does inbound marketing differ from outbound marketing, and is
it right for you?
ouTBounD markeTing
In outbound marketing, an audience is engaged with outbound messaging and one-sided
conversations. Television commercials, print ads, radio spots, direct mailings and billboards
are examples of outbound marketing.
The strategy behind outbound marketing is simple: Hit the targeted audience with your
advertisement with enough frequency and they will eventually take your desired action.
Technology tends to make these techniques less
effective and more expensive. Caller ID blocks cold calls,
TiVo makes TV advertising less effective, spam filters
block mass e-mails, and tools like RSS are making print
and display advertising less effective. It's still possible to
get a message out via these channels, but it costs more.
Outbound marketing is an effective brand building
tactic but were no longer in the Mad Men-esque era
where companies could blast messages and push their
strategies onto consumers.
inBounD markeTing
Instead of driving
a message into
a crowd like a
sledgehammer,
inbound marketing
attracts qualified
customers like
a magnet.
Content - The core of any inbound marketing campaign. It is the information or tool that
attracts potential customers to your site or your business.
Decorative
Concrete
Awards
Call for Entries
The Decorative Concrete Council (DCC), a specialty council of
the American Society of Concrete Contractors (ASCC), St.
Louis, in partnership with Concrete Construction and Architect
magazines, announces its seventh annual Decorative Concrete
Awards. The competition is open to DCC members and nonmembers.
Entries are invited in the following categories: overlays, castin-place stamped and special finishes, stained, polished,
countertops, vertical application, concrete artistry, multiple
applications, and architectural concrete. With the exception of
countertops, two awards may be given in each category, for
projects 5,000 SF and less, and projects over 5,000 SF.
Submittals are judged on craftsmanship, aesthetics,
functionality and creativity.
The deadline for submittal is September 30, 2014. The
awards will be presented at the World of Concrete 2015. For
more information, or to receive a call for entries brochure go to
www.ascconline.org or call 1-866-788-2722.
Visit us online at www.cammagazineonline.com
Search Engine Optimization (SEO) - Makes it easier for potential customers to find your
content. It is the practice of building your site and having inbound links to your site to maximize
your ranking in search engines, where most of your customers begin their buying process.
Social Media - Amplifies the impact of your content. When your content is distributed across
and discussed on networks of personal relationships, it becomes more authentic and
nuanced, and is more likely to draw qualified customers to your site.
SUSTAIN | ABILITY
Thermal Imaging
for Energy Loss Detection
A Thermographic Survey Prevents Energy Loss
and Costly Downtime
By Keith Vosburgh,
President, Total Energy Solutions
Thermographic image (left) and corresponding visual image (right) of multiple potential electrical incidents in electrical control panel. Thermal
image identified areas of concern: Red arrow shows fuse clip heating from either loose connection or corrosion of Phase A (check soon); Green arrow
shows serious fuse clip heating from either loose connection or corrosion of Phase C (immediately service); Blue arrow shows wire/connector screw
clamp force low or corrosion, heat conducting up wire slightly (immediately service).
12 CAM MAGAZINE AUGUST 2014
Using thermograpic
imaging is one more,
fast and cost effective
tool in your check list for
preventive maintenance.
at least annual electrical diagnostic inspections
according to the National Fire Protection
Association. Inspection protects the building
owners and occupants from risk of fire damage
and catastrophic losses related to explosions from
Electrical Arc Flash incidents.
Insurance statistics show that Thermal Imaging
inspection survey costs are a fraction of avoided
incident costs when performed proactively. When
second order incident effects and costs for
emergency shutdowns and business loss, and
expedited repair services and expedited repair part
deliveries are included, the cost ratio can be many
times higher than Thermal Imaging costs.
Most important is correct application of Thermal
Imaging and interpretation of results according to
defined industry standards and practices. The
most
important
thermographic
imaging
qualification is training. Infraspection Institute Level
III, highest level, conforms to the level requirements
defined by the ASNT (ASNT = American Society
for Non-destructive Testing), the qualification
system of thermographic imaging personnel in
classes I, II, and III following similar principals to
those for X-ray and ultrasonic inspectors and other
NDT inspectors.
Using thermograpic imaging is one more, fast
and cost effective tool in your check list for
preventive maintenance.
About the author: Keith Vosburgh, president, Total
Energy Solutions, is an Infraspection Institute Level
III Certified Infrared Thermographer with seven
years experience in multiple applications of
Thermography. He has presented on Thermal
Imaging in commercial refrigeration systems, at
multiple Thermal Imaging conferences. He can be
reached at: totalenergysolutions.llc@gmail.com.
Visit us online at www.cammagazineonline.com
2950 Todd
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Round
two:
common gRound
fIndIng
Round
thRee:
developIng
couRses of actIon and posItIve
solutIons
CAM is now soliciting all participants for
solutions, ideas and options to bring to the last
official roundtable slated for October 16, 2014. It
promises to be another exciting exchange of
ideas from this dedicated group of thoughtleaders.
My hope for this session is that we as an
industry and as CAM members agree on and
develop the right solutions that not only
strengthen our industry, but also strengthen our
individual organizations competitive advantage,
said Raimondo, as well as strengthen the value
that CAM can deliver to our organizations as part
of the solution to todays construction industry
concerns.
Participants will develop a course of action to
resolve concerns identified in the second
roundtable. Changing the culture of the industry
may be part of the solution, said Steck. We
may not totally change it, but we might adjust it
to be a more positive and less defensive culture.
Part of that is going to require good owners
who recognize the benefits of working
collaboratively with all project participants, said
Steck. It means taking the knowledge of all
project participants and using it to help provide a
good project.
As a testament to the success of this
approach, Amalio recently provided some valueengineering ideas with an owner upfront as a
Beyond 2014
The third roundtable may not be the last step.
Steck suggests a series of smaller roundtable
committees composed of participants who want
to be on a solution-solving team for a particular
issue. CAM should sponsor a six-month or
quarterly business roundtable, suggests
Raimondo.
Steck adds, I think what is important is that
when we fix these issues, everybody benefits. Its
a great industry, but we have to get back to what
it is all about. Its about building successful,
creative and wonderful projects with and for good
people that will provide opportunities and jobs for
our area.
Koehler offers his thoughts:
CAM is
dedicated to finding solutions on behalf of the
entire industry through educating, legislating and
advocating. Our intent in convening these
groundbreaking roundtables is to provide the
industry with a way forward.
For more information, please contact CAM
President Kevin Koehler, (248) 972-1101.
igan
sociation of Mich
Construction As
rd Avenue
43636 Woodwa
MI 48302
Bloomfield Hills,
01
Fax 248-972-10
248-972-1000
.com
www.cam-online
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*OFFER AVAILABLE TO NEW MEMBERS UNTIL SEPTEMBER 15TH, 2014.
Government Affairs
Committee
Legislative Update
By Jason Wadaga,
V.P. of Government Affairs,
Kindsvatter, Dalling & Associates
Road fundIng
The legislature made a strong push to pass a major transportation
funding overhaul prior to their summer adjournment, but were unable to
do so. While the Senate did pass some of the transportation funding bills
that came over from the House, they were mostly minor pieces and did
not generate near the $1.2 $2 billion that most suggest is needed to
properly fund Michigans road and bridge infrastructure.
The biggest point of contention right now is what plan is used to raise
a bulk of the money for the roads. Some legislators are opposed to or very
cautious about a large gas tax increase, or increase to vehicle registration
fees, while others would like to see some of the funding come from a tax
increase of a different kind. House Minority Leader Tim Greimel (D-Auburn
Hills) has also said that increased fees for overweight trucks must be part
of the final solution.
The House and Senate spent the final weeks of the spring debating
various funding plans including scraping the 19 cent per-gallon gas tax
and replacing it with a 6-7 percent tax on the wholesale price of fuel. This
plan would ensure that as the price of gasoline increases, so does the
revenue for infrastructure. Senate Majority Leader Randy Richardville (RMonroe) also wants to see the tax linked to the rate of inflation to avoid
the current road funding crisis in the future.
After the realization that a major plan would not get done before the
18 CAM MAGAZINE AUGUST 2014
summer break, the Senate and House adjourned and announced that a
Task Force will be assembled this summer that is bi-cameral and bipartisan to discuss a solution.
Budgets
The legislature passed a $37.3 Billion General Budget and a $13.87
Billion School Aid budget in June that includes spending for the 2014-15
Fiscal Year.
Some of the features of the budgets are:
A 7.4 percent increase for revenue sharing to local communities in
Michigan.
A roughly 4 percent increase to the school aid funding.
$268.8 million to cover teacher retirement costs.
$50 million for film incentives.
$8 million for financially distressed cities, villages and townships.
A 0.4 percent increase to the Department of Corrections (DOC) budget.
This includes 20 new employees for prisoner education.
$94 million to the Budget Stabilization Fund (Michigans Rainy Day Fund).
100 new state troopers, 31 motor carrier operators, and 25 conservation
officers.
$5 million to fight invasive species and $1 million to promote increased
recycling in Michigan.
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uilding the world is all in a days work for the construction industry.
Leave it to a past president of a construction firm to take on the task
of helping to rebuild Michigans economy. Now chair of the Michigan
Senates Economic Development Committee, Sen. Mike Kowall, R-White
Lake Township, once managed Accurate Woodworking, Inc., the Kowall
family enterprise currently celebrating 60 years in business.
Kowalls economic acumen in the small business arena has earned him
an impressive accolade: the Small Business Association of Michigan
(SBAM) recently named Kowall Legislator of the Year. Sen. Kowall has
been a champion for small business during his years in both the state
House and state Senate, said SBAM President and CEO Rob Fowler in a
SBAM press release. His excellent voting record on small business issues
demonstrates his willingness to fight for the success of Michigans
entrepreneurial economy. Over 350 small business owners and supporters
attended the award presentation during SBAMs 45th annual meeting on
June 19, 2014 in Lansing.
Vehicle Bill. The amazing abilities of autonomous vehicles include self-parking, car-to-car communication
for collision avoidance and self-stopping at red lights.
Autonomous vehicles will have in excess of a trillion dollar effect on the automotive industry here in
Michigan, said Kowall. It is going to do to the automotive industry what Henry Fords assembly did in
the past century.
The bipartisan legislation allows automakers to test autonomous vehicles on public roadways and
promotes what is called Wave technology, essentially Wi-Fi for cars. California, Nevada and Florida have
already approved autonomous vehicle testing, making Michigan the fourth state to enact such legislation.
As the main sponsor of this legislation, Kowall knows full well the importance of keeping this technology
in Michigan. Other states were coming to Michigan to get the technology out of the University of Michigan,
Michigan State University and Western Michigan University, said Kowall. Why should we let other states
come to Michigan and take the technology?
Keeping this technology in Michigan will dramatically boost the states economy and the construction
industry. New and expanding companies will fuel demand for the construction of new space and the
hiring of new personnel, said Kowall.
Kowall worked his magic to make it happen. We had extensive hearings on the bill, said Kowall. As
the main sponsor of the bill, I told Sen. Rebecca Warren, D-Ann Arbor, who describes herself as the most
liberal person in the Legislature, what I was doing and how this bill benefits the University of Michigan and
her community. She was the second person to sign. When people saw that a conservative republication
like myself and Rebecca Warren, a liberal democrat, were on board, everybody else signed on. The
legislation passed unanimously in the state Senate, and there was only one no vote in the state House.
The core difficulty was negotiating with automotive and software companies that were intent on protecting
their intellectual property.
Enhancing the penalties for the theft of scrap metal and blocking cash sales is another recent legislative
boost for the construction industry, said Kowall. Overall, the Michigan Legislature has improved the
construction and business climate by revamping the tax code and making changes in unemployment and
workers compensation. These changes have made it easier to do business in Michigan, said Kowall.
Getting rid of the MBT and just the simplification of business taxes have been a big deal for small
companies.
New Developments
in Southeast Michigan
Mike Kowall, R-White Lake Township, serves
Michigans 15th State Senate District, including the
townships of Commerce, Highland, Holly, Lyon,
Novi, Milford, Rose, West Bloomfield and White
Lake and the cities of Novi, Orchard Lake, South
Lyon, Walled Lake, Wixom and part of Northville.
He mentions some of the large developments in
these communities and in the rest of Southeast
Michigan.
The former Ford Wixom Plant will now host a
multi-million dollar development for General Trailer,
a company providing motorhomes, campers and
trailers. I was chasing them for a good six years,
said Kowall. In addition, a 100-acre commercial
site in his district is on the brink of being sold and
a major development launched in the near future.
A host of hospital projects is also on the boards,
including a potential expansion of up to $1.5 billion
proposed for the campus of the Henry Ford West
Bloomfield Hospital. The proposed expansion
may include a hotel, a rehabilitation center and a
healthcare research and development facility.
Other hospital projects include a complete geriatric
village for senior assisted living at Providence
Hospital in Novi; an expansion of McLaren Hospital
in Clarkston; and an assisted living facility for
veterans in Genesys Hospital that was once part
of his district. Every hospital is talking about
expansion, said Kowall. St. Joseph Mercy
Hospital held an open house for its new 300,000square-foot South Tower in Pontiac in late April
2014.
Kowall is looking forward to new developments
in Detroit, including two new condo high-rise
projects on the riverfront east of downtown Detroit.
The new Events Center - the new Red Wings
arena just the arena and the infrastructure is 500
million, said an enthused Kowall. That whole
area will become developed with high-end
housing, shops and other entertainment venues.
In addition, the M-1 Rail will really make
development explode. Clearly, Detroit and its
northern neighbor are primed for an exciting array
of design and construction opportunities.
CAM MAGAZINE AUGUST 2014 21
CONSTRUCTION LAW
Managing Your
Companys Indemnity
Rights and Obligations
By Noreen L. Slank
coverage. The premiums are lower for a good reason: you wont be buying
what you need.
On additional-insured issues, most CGL policies now include
endorsements that expand coverage to anyone you agree to add as
additional insureds. Thats what your insurance agent should be supplying
you with. Its unlikely youll need to add additional insureds to your policy,
one by one, as in the olden days.
But there are many, many versions of these so-called blanket or
automatic additional-insured endorsements. And a number of them arent
very blanket or in any way automatic. They can have a completedoperations exclusion. Or a sole-negligence exclusion. There are many other
variants. Purchase the broadest form of this endorsement you can. And
sometimes you will need to add an endorsement for a specified additional
insured if the contract youve signed requires a particular ISO (Insurance
Services Organization) version of the endorsement.
You are being asked to supply certificates of insurance. Youre asking
for them too. And insurance agents supply them and type in that someone
is an additional insured on some policy for a particular job. Thats nice. But
it doesnt make it so.
Every certificate of insurance, in bold capital letters in the top right-hand
corner of that ACORD form that agents use, says that it doesnt change
the insurance afforded under any policy. To meet your additional-insured
contractual obligations, and to avoid a lawsuit (for which you will not have
insurance coverage) over whether you breached your contract to provide
additional-insured coverage, your policys additional-insured endorsement
must match what you agreed to provide.
Admittedly, this has been a lot of table-setting. But indemnity contracts
are just one of the industrys risk-shifting devices. We like belts, suspenders,
and an extra set of trousers. And sometimes our precautions dont play
nice together.
Personal Lines
Business Insurance
General Liability
Property Insurance
O Contractors Equip.
O Commercial Auto
O Package Policies
Employment Liability
Business Umbrella
O Builders Risk
O Installation Floater
O Multi-Policy Discounts
Homeowners
Condos
Vacation Homes
Renters Insurance
CONSTRUCTION LAW
your insurer and you cant make it do what you want. Invite them to try and
dont get in their way. If you decide that the threat to the business
relationship is real, have your personally retained lawyer write to your insurer.
The letter must do absolutely nothing to jeopardize your defenses to the
indemnity lawsuit because you are going to also send this letter to the bear.
The letter should recite all the
indemnity
language
without
editorializing. It should point out that you
know your insurer will zealously defend
you against the claim. But if a court
rejects your argument, any settlement or
judgment will shift to you and then to
your insurer, along with all the costs of
your adversarys defense to the principal
claim. If the indemnity contract says
youll have to pay attorney fees for your
adversary prosecuting its indemnity
case, this would be a good time to point out that contract language (without
agreeing to its effect). Ask your insurer to seriously reconsider your
adversarys tender.
And if your adversary is also an additional insured under your insurance
policy, now would be a good time to point out where, in your subcontract,
such language appears. Because sometimes the bear or its insurer is so
busy growling, it doesnt make the duality of its relationship to your insurer
clear when it tenders.
If the business risk is high, have your lawyer write a second letter to your
insurer. That one shouldnt be sent to your adversary. It can be doom &
gloom, in all the specific ways lawyers will explain, dwelling on why youre
going to be toast as far as the indemnity lawsuit is concerned. It should try
to persuade your insurer to assume your adversarys defense because thats
what the subcontract calls for and because thats what is in your insurers
best interest.
If your insurer awaits the end of
the indemnity lawsuit, it will pay an
indemnity judgment that includes your
adversarys attorney fees and it will also
incur the expense of defending you. Dont
have your lawyer overdo it, but when
insurers dont defend who theyre
supposed to and it hurts their insured that
could be bad faith. There could be
consequential damages because your
adversary will withhold future business if
this isnt resolved the way it should be.
Storage is cheap.
Lawsuits are expensive.
Keep all the
contracts you sign.
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CONSTRUCTION LAW
industry participants who are affected by the flow of money (or lack thereof)
during the process of a construction project. Below are some illustrative
examples of the proposed reforms.
standaRdIze
notIce
pRoceduRes and elImInate
tRIp wIRes
standaRdIze use
waIveRs of lIen
of
swoRn
statements
and
Sworn statements and waivers of lien are provided for in the Lien Act,
and serve the important functions of providing information and assuring
protection from liens for private owners. The Bond Act does not include
these instruments. However in practice, public owners often adopt the
CONSTRUCTION LAW
procedures from the Lien Act by requiring sworn
statements and lien waivers, and the parties
proceed as if the function is the same as under
the Lien Act. The Bond Act should be updated
to include the use of sworn statements and
waivers of lien, so there is no question the effect
of these documents will be consistent with the
Lien Act.
conclusIon
STRENGTH THROUGH
KNOWLEDGE AND SKILL
Website: www.realapprenticeship.com
DEMOLITION
MAN
Since 1987
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