Posts Tagged ‘New Orleans City Business’

Scott Wolfe Quoted in New Orleans City Business Article About Delays When Paying Subcontractors

On August 11, 2011 Author By Scott Wolfe Jr        

Scott Wolfe Jr. Construction LawyerSubcontractor non-payment is something very familiar to me. It’s been written about here on the Construction Law Monitor (especially with regard to how pay when paid clauses affect subcontractor payments), and it’s something my other blog (the Construction Lien Blog) focuses on exclusively in its discussion of mechanic liens.

So it’s no surprise that New Orleans City Business magazine contacted me to discuss how the law can help and hurt subcontractors who are frustrated when waiting for payments to trickle down from the owner.  The article can be found on City Business’ website (subscription required) here:  Subcontractors grow tired of waiting on delayed job payments.

The article’s author, Ben Myers, does a great job of capturing the friction between general contractors and subcontractors on the subject of payment. General contractors complain that getting payment can be complex and time consuming because that’s how money trickles through, and that subcontractors should be taking the risk for their portions of the work.  Subcontractors complain that they are bullied around and “pay when paid” provisions sometimes leave them drowning because of problems the general has completely unrelated to their work.

It’s a real complicated mess – and the article gets both sides on the subject and helps explain the complications.

Posted in:     Around The Web, Payment Requirements  /  Tags: , , , , , ,   /   Leave a comment

New Legislation Could Change How Contractors File and Pay Taxes

On June 2, 2011 Author By Scott Wolfe Jr        

Last week, The American Job Builders Tax Reform Act of 2011 was introduced in the house as a bi-partisan bill (sponsored by Reps. Wally Herger (R-Calif.), David McKinley (R-W.Va.) and Shelley Berkley (D-Nev.)) to update how contractors are taxed. The introduction was immediately applauded by the Associated Builders and Contractors, who claim the bill will modify the tax code to help small construction contractors that are facing increased costs in energy, labor and materials.

You can track the bill on GovTrack here.

This isn’t the first time at the rodeo for the American Job Builders Tax Reform Act.  It was introduced last session, but died without any action. ABC and small contractors around the country are hoping for a different fate this session.

The proposed effects of this bill are best explained by the ABC in their press release last week as follows:

“The problem facing construction contractors is that they have been forced to pay income taxes on projects based on estimates rather than having the option of paying taxes when the contract is completed,” said Robin Word, chairman of ABC’s Tax Advisory Group and president of Word CPA Group in Jackson, Miss. “However under this bill, the definition of ‘small contractor’ will enable more contractors to report contra ct income at the conclusion of their jobs.”

Under current law, construction contractors cannot use the completed contract method (CCM) of accounting if average annual gross receipts exceed $10 million – a figure that has not been adjusted for inflation since the threshold’s inception in 1986. Instead, contractors are required to use the percentage-of-completion method (PCM) which does not accurately reflect profits because of the required use of estimates. The American Job Builders Tax Reform Act increases the threshold to $40 million and also indexes the threshold for inflation.

To put it simply, if a contractor has gross revenue over $10m, it must “estimate” its profits on any active construction projects when filing taxes. The actual profits it receives may be more or less than this estimate, whereupon the contractor has to alert the IRS of the difference and either get a credit or pay the difference.  Those contractors with less than $10m in revenue can simply wait forthe project to be completed before being obligated to pay taxes on the profits.  The new bill proposes raising the exemption figure from $10m to $40m, encompassing a larger number of contractors in the US.

We’ll monitor this bill and report any updates.  A tip of the hat to New Orleans City Business’ blog for calling my attention to the bill.

Posted in:     Construction News, Federal, Regulations  /  Tags: , , , , , ,   /   Leave a comment

Around the Web in Construction Law – May 21, 2010

On May 22, 2010 Author By Scott Wolfe Jr        
  • 29 States Add Construction Jobs Between March and April:    The Associated General Contractors of America released its report on the rise/fall of construction jobs around the country for the most recently reported month, and there is a mixture of good news and bad news (depending on where you are).   29 states splits the country directly in half, with some folks having a good month and some folks not.   The New Orleans City Business Blog chimed in to pass along word that Louisiana lost jobs during the period. Washington and Oregon gained jobs in the period, barely.   .01% and .02% respectively.
  • I subscribed to a new blog this week, Government Contracts Legal Forum, recently launched by Crowell Moring and focusing on….government contracting law.   Involved with this blog is our friend in green building law, Chris Cheatham, who works at Crowell Moring and will be posting on the new blog from time to time.   Chris runs the Green Building Law Update blog.   One of his firsts posts on the new blog points out an Obama Executive Order that will require more green building projects.
  • New Lead Based Paint, Renovation, Repair and Painting Rule is causing contractors to panic, as per Andrea Goldman’s Massachusetts Builders Law Blog.   Andrea has posted a great deal about the new RRP rules, and if you deal with lead-based paint in any way or you renovate homes or buildings with lead-based paint, you will want to pay attention to these important changes from the EPA.
  • Louisiana Construction Law Blog on Blogspot discusses “Initial Decision Makers” in construction projects.   While IDMs have been around for a while, there really became popular when the AIA incorporated the concept into its contract documents a few years ago.    This post from our friends up in Shreveport, Louisiana, offers a great primer on the concept.

Interested in more articles and blog posts around the web on construction law?   You can check out other articles I’ve shared over the past week on my Google Reader Shared Items Feed.

Posted in:     Around The Web  /  Tags: , , , , , , , , ,   /   Leave a comment

Louisiana Not Missing The Green Revolution

On June 25, 2009 Author By Scott Wolfe Jr        

An article in New Orleans’ City Business Magazine this week reports that “green” jobs in Louisiana have grown in the past decade.

The data – taken from a report that analyzed the growth of clean energy jobs across the nation – demonstrated that Louisiana’s growth in the green sector has been average.  The City Business story noted that “Louisiana had the 24th most clean-energy businesses an the 22nd most green jobs.”

Remember that previously on the Louisiana Green Law blog, we asked whether the Green Building Boom was finally arriving in Louisiana.  It’s no secret that since Hurricane Katrina, rebuilding the Big Easy “green” has been all the buzz.

As the City Business blog notes, even the New York Times recognizes that Louisiana is in the hunt for money in the green economy, although missing venture capital funding and a lot of the deep pockets that exist in California and along the West Coast.

However…as with all my discussions about green opportunities, it’s important for capitalizing businesses to be cautious of the risks [see blog category:  Green Building Risks].

Is your business’ green advertising really greenwashing?

If your product or service doesn’t increase energy performance, or doesn’t qualify for the anticipated LEED credit or other green credit, will your company be exposed to litigation and damages?

Unfortunately these days, there are more questions than answers.  It’s prudent to consult with an attorney if your company is experimenting in the green industry.  It’s a huge sector with lots of opportunity, but it’s worth analyzing the risks, and protecting your investments.

This post originally appeared on Wolfe Law Group’s topic-specific Louisiana Green Building Law Blog.

Posted in:     Green Building  /  Tags: , , , ,   /   4 Comments

Around The Web: Updates on Construction Law and Wolfe Law Group 3/13/09

On March 14, 2009 Author By Scott Wolfe Jr        

Around the Web this week, there seemed to be a lot of news related to dirty politics in Washington and Louisiana, as well as some interesting blog posts and news articles related to the successes and failures in arbitration.

Posted in:     Around The Web  /  Tags: , , , , , , , ,   /   1 Comment