COMMERCIAL CONSTRUCTION IN NORTH CAROLINA: Late Payments to Subcontractors – is it legal?

On Commercial Construction Projects, North Carolina law provides Protect Your Small Business with Legal Counselthat a General Contractor cannot withhold payment to its Subcontractors just because the General Contractor has not been paid by the Owner of the project. Specifically,  N.C.G.S. §22C-2. Performance by Subcontractor states:

“Performance by a subcontractor in accordance with the provisions of its contract shall entitle it to payment from the party with whom it contracts. Payment by the owner to a contractor is not a condition precedent for payment to a subcontractor and payment by a contractor to a subcontractor is not a condition precedent for payment to any other subcontractor, and an agreement to the contrary is unenforceable.”

As the statute says, even if the written Contract provides such a “pay when paid” clause, the provision is unenforceable by the General Contractor as a matter of North Carolina public policy.

Moreover, any payment due to a Subcontractor from a General Contractor, or from a Subcontractor to its subcontractor, must be paid withing seven (7) days of receipt of the subcontractor’s invoice for work performed. N.C.G.S. § 22C-3.  Time of Payment to Subcontractors states:

“When a subcontractor has performed in accordance with the provisions of his contract, the contractor shall pay to his subcontractor and each subcontractor shall pay to his subcontractor, within seven days of receipt by the contractor or subcontractor of each periodic or final payment, the full amount received for such subcontractor’s work and materials based on work completed or service provided under the subcontract.”

Additionally, any late payments bear interest at the rate of 1% per month or 12% per year.  N.C.G.S.  § 22C-5.  Late Payments to Bear Interest states:

“Should any periodic or final payment to a subcontractor be delayed by more than seven days after receipt of periodic or final payment by the contractor or subcontractor, the contractor or subcontractor shall pay his subcontractor interest, beginning on the eighth day, at the rate of one percent (1%) per month or a fraction thereof on such unpaid balance as may be due.”

However, these rules do not require a General Contractor or Subcontractor to pay its subcontractors, as set forth above, if the subcontractor’s work is deficient in any way.  N.C.G.S.  § 22C-4.  Conditions of Payment states:.

“Nothing in this Chapter shall prevent the contractor, at the time of application and certification to the owner, from withholding such application and certification to the owner for payment to the subcontractor for: unsatisfactory job progress; defective construction not remedied; disputed work; third party claims filed or reasonable evidence that claim will be filed; failure of subcontractor to make timely payments for labor, equipment, and materials; damage to contractor or another subcontractor; reasonable evidence that subcontract cannot be completed for the unpaid balance of the subcontract sum; or a reasonable amount for retainage not to exceed the initial percentage retained by the owner.”

Finally, be aware that these provisions apply to Commercial Construction Projects only; not to Residential Construction Projects.  N.C.G.S. § 22C-6.  Applicability of this Chapter states:

“The provisions of this Chapter shall not be applicable to residential contractors …, or to improvements to real property intended for residential purposes …., or to improvements to real property intended for residential purposes which consist of 12 or fewer residential units.”

If you are a Subcontractor working on a Commercial Construction Project in North Carolina, and you have trouble getting payment for work you performed on the project, call Wesley S. Jones now for a free phone consultation.

Wesley Jones is a Construction and Business Lawyer in Wilmington, North Carolina serving all of Southeastern North Carolina including New Hanover County (including Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach and the areas of Ogden, Masonboro, Myrtle Grove, Landfall, and Mayfair), all of Pender County (including Burgaw, Surf City, Hampstead and Topsail Beach) and all of Brunswick County (including Bald Head Island, Bolivia, Calabash, Leland, Shallotte, Southport, Saint James, Ocean Isle, and Oak Island).

OPERATING A FRANCHISE BUSINESS IN NORTH CAROLINA

Operating a Franchise Business in WilmingtonOperating a franchise business is a great way to operate a business provided you begin the process properly and stay compliant with all relevant laws.  A franchise business typically comes with a set framework for how the business will be conducted, products or services offered, pricing, and special promotions.  Franchisors also give franchisees very specific guidelines for everything from advertising to how services or products are offered to the public. For many, running a franchise business is ideal – they are provided with a business formula with a proven track record of success.

As an attorney for numerous business owners in and around the Wilmington area, Wesley Scott Jones knows that it can potentially be easier and less stressful to operate a franchise as opposed to a solo enterprise.  Another plus is the fact that around the country, franchises seem to have a higher survival rate compared to other similar ventures.  Having the financial backing and name recognition of an established business certainly doesn’t hurt.

However, starting and operating a franchise business can be daunting, complicated and unnerving.  One of the problems that can arise is the iron-clad nature of the contracts that large franchisors want franchisees to sign.  What should be the proper term for the contract – 5, 10, 20 years?  What kind of Security Agreements, if any, should you be willing to sign in favor of the franchisee?  Do you fully understand all of the terms and conditions of the Franchise Agreement and will you be able to comply with all them?  Should you operate the new business as a sole proprietorship or under a new Business Entity?  That’s why anyone considering a franchise business should discuss his or her plans with a business law professional, like Wesley Jones.

Wesley Jones also has experience with taking a business from private ownership to franchise, including consulting on and drawing up Contracts and all legal paperwork involved in the transaction.

To schedule an appointment with attorney Jones, please give his office a call at 910-256-5800.   Initial phone consultations are free.  Call now!

The office is located in Lumina Station, just before the Wrightsville Beach drawbridge. The address is 1904 Eastwood Road, Suite 301.  Parking is free parking! 

Wesley Jones is a Business Law Attorney serving all of Southeastern North Carolina including  New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach, Landfall and Mayfaire), all of Pender County (e.g. Burgaw and Topsail Beach) and all of Brunswick County (e.g. Bolivia, Southport, Ocean Isle, and Oak Island).

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STARTING AND OWNING A FRANCHISEE BUSINESS IN WILMINGTON

RESIDENTIAL CONSTRUCTION CLAIMS IN NORTH CAROLINA

Attorney for General Contractor, Wilmington NC

Residential Construction Claims come about within a variety of contexts depending upon who you are in the process:

1. Homeowners:

Common claims that existing or potential Homeowners can have include claims against the General Contractor, a Design Professional (Architects, Engineers, Landscape Architects, Surveyors, etc.), a Subcontractor, a Material Supplier or a Real Estate Agent, among others.

  • Claims against the General Contractor include:  Breach of Contract, Delayed Performance, Breach of Express Warranties, Breach of Implied Warranties, Breach of Warranty of Workmanlike Performance, Breach of Warranty of Habitability, Negligence, Negligent Construction, Negligent Supervision, Negligent Inspection of the Work, Negligent Selection of Materials, Misrepresentation, Fraud, Unfair and Deceptive Trade Practices, and Failure to Be Properly Licensed.
  • Claims against a Subcontractor or Material Supplier include:  Negligence, Breach of Implied Warranty of Merchantability and Negligent Selection of Materials.
  • Claims against a Real Estate Agent include:  Breach of Contract, Breach of Fiduciary Duty, Breach of Duty of Loyalty and Obedience, Breach of Duty of Skill, Care and Diligence, Failure to Disclose Material Facts, Improper Accounting of Funds, Negligence, Fraud, and Unfair and Deceptive Trade Practices.

2. Builders and Contractors:

Common claims that Builders and Contractors can have include claims against the Homeowner, a Design Professional, a Subcontractor, or a Material Supplier, among others.

  • Claims against the Homeowner include:  Breach of Contract, Failure to Pay, and Interference with Performance of Contract.
  • Claims against a Design Professional include:  Breach of Contract, Breach of Warranty of Plans and Specifications, Negligent Preparation of Plans and Specifications, Negligent Supervision, and Negligent Inspection.
  • Claims against a Subcontractor or Material Supplier include:  Breach of Contract, Breach of Implied Warranty of Merchantability, Negligence, and Negligent Selection of Materials.

3. Subcontractors and Material Suppliers:

Common claims that Subcontractors and Material Suppliers can have include claims against the Homeowner, claims against the Builder/Contractor, and claims against each other.

  • Claims against the Homeowner include:  Failure to Pay, Claim of Lien On Funds, Claim of Lien On Real Property, and Signing a False Lien Waiver.
  • Claims against the Builder/Contractor include:  Breach of Contract, Failure to Pay, Claim of Lien On Funds, Claim of Lien On Real Property, and Signing a False Lien Waiver.
  • Claims against each other include:  Breach of Contract, Failure to Pay, Claim of Lien On Funds, Negligent Selection of Materials, and Product Liability.

If you anticipate or are experiencing a Construction Law Dispute with respect to the construction or sale of a Residential Home, call an experienced construction attorney for advice and help.  Call Wesley Jones now at 910-256-5800 for a free telephone consultation.

Wesley Jones is a Construction and Litigation Lawyer serving all of Southeastern North Carolina including New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach and the areas of Ogden, Masonboro, Myrtle Grove, Landfall, and Mayfair), all of Pender County (e.g. Burgaw, Surf City, Hampstead and Topsail Beach) and all of Brunswick County (e.g. Bald Head Island, Bolivia, Calabash, Leland, Shallotte, Southport, Saint James, Ocean Isle, and Oak Island).

Business Litigation Matters

Business Litigation MattersWhen Wilmington attorney Wesley Scott Jones takes on a case, his goal is to handle the matter swiftly and effectively.  As a business and lawyer and litigator, Wesley appreciates that his clients want to get back to business, not spend their valuable time in a courtroom. Over the years, attorney Jones has represented both plaintiffs and defendants from large and small businesses, including family-owned businesses, Corporations, Limited Liability Companies, Sole Proprietors, and Franchises, both big and small in District Court, Superior Court, Federal Court and in Mediation.  Learn more about Business Litigation Services from Wesley Jones.

Whether the business owner is a new or experienced professional, the wide variety of issues that can escalate into a legal dispute is truly amazing.  That is why it makes sense to retain the services of a skilled litigator, just in case.  In recent years, Attorney Jones has represented clients throughout the courtrooms of southeastern North Carolina, in matters such as:

  • Account Collection
  • Breach of Contract
  • Breach of Corporate Duty
  • Business Judgment Rule
  • Contract Disputes
  • Collection of Past Due Accounts
  • Deceptive Trade Practices
  • Deceptive Business Practices
  • Debt Collection
  • Delinquent Accounts
  • False Statements
  • Franchisor-Franchisee Disputes
  • Fraud
  • Interference with Contracts or Business Relations
  • Judgment Recovery
  • Misappropriation of Trade Secrets
  • Misrepresentation
  • Negligent Misrepresentation
  • Nonpayment
  • Ownership Disputes
  • Partnership Disputes
  • Payment Disputes
  • Piercing the Corporate Veil
  • Torts
  • Unfair and Deceptive Trade Practices
  • Unfinished Work
  • Undelivered Goods

Most everyone going into a business or construction deal is usually hopeful and excited about the anticipated end result.  Ensure smooth sailing for your business and gain piece of mind with a little help from the Law Office of Wesley Scott Jones.  To learn more about the services his firm provides, please call lawyer Wesley Jones today at 910-256-5800 for a free consultation.

Wesley Jones is a Litigation Lawyer serving all of Southeastern North Carolina including  New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach and the areas of Ogden, Masonboro, Myrtle Grove, Landfall, and Mayfair), all of Pender County (e.g. Burgaw, Surf City, Hampstead and Topsail Beach) and all of Brunswick County (e.g. Bald Head Island, Bolivia, Calabash, Leland, Shallotte, Southport, Saint James, Ocean Isle, and Oak Island).

LITIGATION TERMS EXPLAINED

ContractRegardless of how many episodes of Boston Legal, Law and Order, or Judge Judy you may have watched, there are scores of legal terms that are often misunderstood.

In an effort to reduce confusion, it’s a good idea to review a legal glossary now and then.  Here are a few words from the legal lexicon which you should know if heading to court.

COMPLAINT – The first document filed to start most types of civil lawsuits.  It is filed by the Plaintiff.

PLAINTIFF – The party who initiates a lawsuit by filing a Complaint.

CIVIL SUMMONS – The document attached to the Complaint that is served upon you by the Plaintiff (typically by sheriff or by certified mail) that informs you of the filing of the lawsuit against you.

ANSWER – The document filed in response to the Complaint.  It is filed by the Defendant.

DEFENDANT – The party who drafts and files an Answer in response to a Complaint.

ALLEGATIONS – Factual statements made in a Complaint or an Answer that constitutes true and accurate statements of fact.

COUNTERCLAIM – The document filed by a Defendant making Allegations against a Plaintiff.  This party is called a Third-Party Plaintiff.

Motion – Typically a written request to a judge seeking a ruling of law in favor of the moving party – i.e. the Plaintiff or the Defendant.

BRIEF – A written document drafted by an attorney in support of a Motion.

TORT – A civil injury or wrong to someone’s person or property.

BREACH OF CONTRACT – A civil injury or wrong involving a party’s rights and obligations under a contract.

For help in understanding legal terms that may be relevant to you or your business, please contact Attorney Wesley Jones in Wilmington, North Carolina : 910-256-5800.  All initial phone consultations are free.

Wesley Jones is a Litigation Lawyer serving all of Southeastern North Carolina including  New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Landfall, and Mayfaire), all of Pender County (e.g. Burgaw and Topsail Beach) and all of Brunswick County (e.g. Bolivia, Southport, Ocean Isle, and Oak Island).

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Breach of Contract

ContractAlong with the goods and services a business provides to its customers, its success and reputation are also built on the strength of its contracts. In business, agreements can be verbal or in writing. Regardless of their format, each type should be honored.

When one or more of the parties involved does not honor a contractual binding agreement or arranged exchange, a breach of contract occurs. This also applies to situations when one party’s performance is met with interference or one party indicates to the other that the agreed-upon promise will not be fulfilled. One’s behavior and conduct can also be an indicator of their inability or unwillingness to honor the established agreement. Legal action may be the next step.

In breach of contract cases, Attorney Wesley Scott Jones believes investigating all of the mitigating circumstances involved in the dispute is key in arriving to a positive outcome for his clients. Based on his direct experience with contract law, Wes knows that simply denying wrongdoing is not enough. Jones is also keenly aware as a defense attorney who represents those in the construction and real estate industry, that taking quick action is vital in the development of a strong argument.

With questions concerning contractual dealings, there are an infinite number of situational factors that can come into play. A few typical examples are:

  • The contract contains terms that are unclear.
  • The agreement was supposed to have been in writing but all or portions of it, are not.
  • There are clerical errors in the contract that can impact its validity and outcome.
  • One party was coerced into signing the agreement, under circumstances such as intimidation or false information.
  • In order to fulfill the contract, illegal activity would have to occur.

In matters that concern business, construction, or real estate in the greater Wilmington area, Wes Jones has demonstrated extensive experience. If you are in danger of being charged with breach of contract, please call the office of Wesley Scott Jones at 910-256-5600.

Learn more about his practice and the other types of cases he handles here: wsjlaw.com/practice-areas-and-services

The office is located in Lumina Station, just before the Wrightsville Beach drawbridge. The address is 1904 Eastwood Avenue, Suite 30. To make an appointment or get more information on the services Attorney Wes Jones provides, please contact Wes Jones today.

Business and Contract Dispute Attorney in Wilmington

Picture of a business man.Can you guess the answer to this question: “What is the most common type of business conflict between opposing parties that can often lead to courtroom litigation?” If you guessed contract disputes, you would be correct.

There are practically as many different types of contract disagreements as there are businesses. Seeking a resolution to these types of clashes can be exhausting and take its toll on your business through the stress, lost time, and expense of a potential lawsuit. With contract disputes, it is best to address them as quickly and efficiently as possible, because they can have a direct impact on your other business dealings. As a business owner, it is also extremely important to safeguard your legal rights. In many cases of contract conflicts, an experienced Business and Contract Dispute attorney can help resolve the matter without civil litigation.

In the Greater Wilmington area, business owners are discovering that for matters such as these, the law firm of Attorney Wesley Scott Jones is the one to contact. Whether the contract in question was created years ago or you’re considering drafting a new one, Wes can help. Because of his experience in this area of business law, he can work with you to ensure that your contracts are clear, thorough, and enforceable.

Wes knows that there are a number of contracts that can easily become a source of conflict among the parties who are subjected to them. A few common examples are business agreements involving customers or clients, distributors, vendors, suppliers, manufacturers, contractors and subcontractors, independent contractors, franchises, and licensing. Quarrels are also commonplace that pertain to service agreements, purchase or sale agreements, construction contracts, and government contracts.

When you contact the law firm of Wesley Scott Jones, please know that he is committed to settling such disputes in a fair and reasonable manner. As a Business and Contract Dispute Litigator, he can explain your legal rights and obligations and then guide you to the appropriate legitimate options. Follow this link to learn more about Business or Construction Contract Disputes. To contact the office of Wesley Scott Jones directly, please call 919-256-5800.

 

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Contract Disputes – Business or Construction

Contracts are an essential part of doing business. From setting up your company, forming partnerships, corporations, LLCs, establishing shareholders, hiring employees, and working with customers, contracts are a necessary component for protecting you, your business, and your assets.

Unfortunately, even contracts written with the utmost attention to detail can still come under dispute.  Working with an experienced attorney to handle the matters addressed in any contract dispute will be to your advantage.  Business and contract disputes can lead to different possible outcomes: trial litigation, arbitration, or mediation.  An experienced business lawyer will be able to analyze the circumstances and navigate your options to arrive at the best possible outcome for you.

The Law Office of Wesley Scott Jones in Wilmington, NC offers business and construction law services to handle business disputes on behalf of clients.  If you are currently involved in a contract dispute in the greater Wilmington NC area or want to make sure you’re protected in future possible disputes, contact Wes Jones to schedule a meeting and consultation: 910-256-5800

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