Bob Huber and Steve Schemenauer Quoted in Finance & Commerce
Construction attorneys Bob Huber and Steve Schemenauer were quoted in a recent Finance & Commerce story on changes made to the Minnesota law that governs prompt payment and retainage for construction service providers.
The change passed by the Minnesota legislature reads, "If an undisputed payment is not received within 10 days, the prime contractor or subcontractor of any tier that has not received the undisputed payment may suspend work under the building and construction contract until the undisputed payment is received."
Before, unpaid contractors were limited to interest at the rate of 1.5 percent per month plus attorney's fees and other costs of collection. They can also stop work until they get paid.
According to Steve the changes to the law were meant to address a specific problem.
"What you'd get sometimes is a scenario where subcontractors or suppliers were basically financing projects. That was the key issue from the perspective of the Minnesota Subcontractors Association. "
Bob added that the changes will have a big impact on the industry, especially now that contractors can stop working without giving notice.
Bob is quoted as saying, "The way this statute is written, you can stop work without giving a cure notice, which I think may become controversial. It might lead to more litigation.
Steve represents general contractors, subcontractors, developers, owners, and property managers in all forms of litigation and alternative dispute resolution.
Bob practices construction law and has asserted and defended against many bid protests on low-bid, design-build and best value procurements.
Both Steve and Bob are partners and practice in the Minneapolis office.
Read the full story: "Laws add leverage for subcontractors."