In the past, it was more common for a single entity to undertake the entirety of a large construction project. From providing the needed materials to supplying adequate labor, a single Minnesota corporation may have done all of the planning and work needed to complete a large building project. Today, however, many separate entities may all work on a single project and provide specialized goods and services in order for the building to be finished.
Many Minneapolis residents and businesses engage the services of construction professionals when they want to move, expand or change the structures in which they operate. Construction professionals bring with them experience and knowledge on the best practices for erecting new buildings for personal and business use. When construction practitioners and outside parties choose to come together on a construction project, they often draw up contracts to outline the terms of the endeavor.
Whenever a party contracts to build a new building or perform major remodels on an existing structure, construction law may be involved. Minnesota residents who work in the construction field or who have worked with construction professionals to build their homes and business structures have likely come across this area of legal practice. However, due to the breadth of topics covered by construction law it can sometimes be hard to completely define.
New homes are popping up throughout Hennepin County, giving existing and first-time homebuyers a chance to get into the housing market with brand new properties. However, many current homeowners are looking into projects at their residences to improve or augment the structures in which they live. Home improvement or remodeling construction is a major industry and the individuals who work in it are regulated to perform their jobs up to particular standards.
In 2007, a group of construction industry associations collaborated to publish the ConsensusDOCS contract forms. These forms were meant to provide a uniform set of contract documents which could be used in construction projects.
In a recent unpublished decision, Breidenbach Company, LLC vs. Prosperity Real Estate Investments, LLC (Minn. Ct. App., July 20, 2010), the Minnesota Court of Appeals was asked to determine whether a mechanic's lien was superior and prior to a mortgage held by a bank. The Contractor and the property owner entered into a contract for demolition and new construction of residential property in Minneapolis in April, 2007. The project was financed by a construction loan, which was recorded on June 18, 2007. The bank took photographs on that date, which reflected that the contractor had made no visible improvements as of that date.