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Author Archives: Tom Squeri

State Board of Equalization Clarifies Sales Tax on T&M Construction Contracts.

There has been some confusion among construction contractors recently about the California State Board of Equalization’s (“Board” or “SBE”)position on the application of sales tax to materials provided by a construction contractor working under a time and materials (“T&M”) contract.  The confusion stems from an unclear “Summary of Application of Tax for Construction Contractors” table [...]

Home Improvement Contracts and Time and Materials Pricing

A recent legal presentation at Graniterock’s Concrete and Building Materials Expo has generated a lot of discussion.  One of our speakers told the audience that it is unlawful for a contractor and a homeowner to enter into a contract for home improvement work where the price term is based on “time and materials” (“T&M”).  Several [...]

Fly-by-Night Paving Contractor Hit With Huge Fine

Fly-By-Night Paving Contractor Hit with Huge Fine It happens all over the Country. A paving contractor knocks on a residential door, claims to have asphalt left over from a near-by job, and offers a “smoking deal” to pave the consumer’s driveway right then and there. The asphalt goes down and the contractor drives off with [...]

Prevailing Wage Requirements Expanded to Off-Haul of Road Construction Materials

Prevailing Wage Requirements Expanded to Off-Haul of Road Construction Materials   As this Blog has previously reported (See August 17, 2011 post, California DIR…), the California Division of Industrial Relations (DIR) has taken the position that the off-haul of materials excavated from a public works construction site is covered by the Prevailing Wage Law (PWL), [...]

Some Keys to Success for Small Contractors

SOME KEYS TO SUCCESS FOR SMALL CONTRACTORS Tom Squeri, Vice President and General Counsel, Granite Rock Company This is the fifth and final in a series of keys to success for the small contractor offered by Tom Squeri, Graniterock Legal Counsel. Don’t Fight to the Bitter End; Learn the Art of Compromise.  On the topic of [...]

Some Keys to Success for Small Contractors

SOME KEYS TO SUCCESS FOR SMALL CONTRACTORS Tom Squeri, Vice President and General Counsel, Granite Rock Company This is the fourth in a series of keys to success for the small contractor offered by Tom Squeri, Graniterock Legal Counsel. Be a Great Communicator.  As a construction foreman recently told me, contractors are not “411 kind of [...]

Some Keys to Success for Small Contractors

SOME KEYS TO SUCCESS FOR SMALL CONTRACTORS Tom Squeri, Vice President and General Counsel, Granite Rock Company This is the third in a series of keys to success for the small contractor offered by Tom Squeri, Graniterock Legal Counsel. Pick the Right Jobs.   Some projects are just riskier than others.  Large subdivisions and multi-family residential work [...]

Some Keys to Success for Small Contractors

This is the second in a series of keys to success for the small contractor offered by Tom Squeri, Graniterock Legal Counsel. Remember that Cash Flow is Key.  Cash flow shortages cause more contractor failures than any other problem.  Contractors often measure success by revenue and job margin.  The thinking is that as long as [...]

Some Keys to Success for Small Contractors

SOME KEYS TO SUCCESS FOR SMALL CONTRACTORS Tom Squeri, Vice President and General Counsel, Granite Rock Company   In the climactic scene of the comedy classic, Naked Gun: From the Files of Police Squad, villain Vincent Ludwig’s (Ricardo Montalban) plot to assassinate the Queen of England at a Los Angeles Angels baseball game is revealed.  [...]

Prompt Payment Laws

WITHHOLDING UNDER PROMPT PAYMENT LAWS MUST BE OBJECTIVELY REASONABLE The timing of construction payments in California is regulated by a series of laws that are collectively called the “prompt payment laws.”  The particulars of each of the laws are different.   Some apply to public works, some to private; some cover retention payments, others cover progress [...]