Construction Law Newsletters
A contractor is often confronted with labor issues and labor disputes in a construction project. In order to avoid potential labor disputes, a contractor should make certain preparations both before and during the construction project.
Pursuant to Congress' power to regulate commerce, the Fair Labor Standards Act (FLSA) was enacted to ensure that employees engaged in interstate commerce or in the production of goods for interstate commerce were provided with labor conditions conducive to their health, efficiency, and general well-being. The FLSA establishes a minimum wage rate, provides for maximum hours and overtime pay, mandates record-keeping, and regulates child labor.
As a general rule, contractors, architects, and engineers must be licensed in order to engage in the erection of a new structure or in the repair, remodeling, or alteration of an existing structure. If a state requires a contractor, an architect, or an engineer to be licensed, the contractor, the architect, or the engineer will be subject to civil and criminal penalties for designing or for performing construction work without a license.
When work on a construction project has been completed, the contractor will present an affidavit certifying that the work has been done and payment for such work is due. Affidavits are presented for both progress payments and when the final payment is due. The content of the payment affidavit will generally include a statement to the effect that the contractor has paid its subcontractors and suppliers.
Termination of a private construction contract can occur through the mutual agreement of the parties, one party's breach, impossibility of performance by a party, or operation of law. Additionally, the contract may be rescinded if it was entered into as the result of fraud, mistake, duress, or undue influence.