Baton Rouge Business And Construction Law Blog

Some entrepreneurs in Louisiana may decide they want to establish a company in the state, and some of them may decide they want their business to be a corporation. However, under business law, there are various types of corporations to choose from. Thus, before making any decisions regarding corporations, it is important to know what your options are.

First, there are general corporations. These corporations are owned by an unlimited number of stockholders but are a separate entity for legal purposes. This means that stockholders are generally not personally liable for the debts of the company. Stockholders can sell their shares of the corporation, and, if the ownership of the corporation changes, the management of the corporation does not also have to change. However, general corporations must comply with various Louisiana and federal laws and regulations.

The many parties to a construction project -- project owners, contractors, subcontractors and suppliers -- generally contract with one another to provide goods or services in exchange for payment. It would be nice to think that all construction projects in Louisiana run without a hitch and everyone is paid on time. However, this doesn't always happen. There are legal remedies for this, however, including the filing of a lien.

Essentially, a lien is a legal claim a person or organization has to a piece of property, to recover unpaid debts if the property is foreclosed upon. Specifically, when it comes to construction law, if contractors are not paid what they are owed, they may file a mechanic's lien against the property. A mechanic's lien can also be filed if a contractor does not pay subcontractors.

We would like to believe that most construction projects in Louisiana will be completed without a hitch, but construction work can be dangerous, and it is not uncommon for a worker to be injured on the job. Specifically, when it comes to independent contractors, it is important to understand who is liable for injuries workers suffer while performing their job duties.

In general, the business that hires the independent contractor will not be liable for injuries suffered by third parties caused by the negligent acts of the contractor. This is because the contractor has authority over the work they do, and, thus, has an obligation to make sure the work environment is safe. If a third party is injured due to an unsafe work environment that the contractor controls, the contractor may be held responsible.

The average person in Louisiana might use the terms "estimate" and "bid" as synonyms. However, when it comes to construction law, these terms have very specific meanings, as they refer to different steps in determining what the contractor's costs will be, and what the contractor will ultimately charge for their services.

Estimates are essentially costs incurred for completing the project the contractor is being hired to do, such as materials and labor costs. These price estimates are informative to project owners, but they do not constitute a binding contract between the parties. Estimates that a contractor presents to a project owner must be reasonably accurate. There may be preliminary estimates, square foot estimates, assembly estimates and ultimately, the final estimate.