Have you ever been in a situation where your subcontractor or fabricator did not have the financial ability to purchase material needed for a project? Have you ever offered your assistance by way of either directly purchasing the material and providing it to the subcontractor/fabricator or advancing funds to the subcontractor/fabricator to allow for the purchase? While this arrangement has its advantages, contractors should be aware of their exposure, particularly if the subcontractor/fabricator has financial issues down the road. Even though a contractor fronts the funds to purchase the materials, it could lose its interest in those materials to the subcontractor/fabricator’s lender, especially if that lender holds a security interest in the subcontractor/fabricator’s inventory. Continue Reading Contractors: Protect your Investment in Materials
Anthony M. Bottenfield is an Associate in the Firm's Construction Group and concentrates his practice on construction litigation. Anthony represents homeowners, builders, and contractors in construction defect matters as well as a wide-range of construction-industry related clients in every stage of litigation from discovery, pre-trial practice, trial, post-trial motions, and appeals.