We found a fascinating article on the history of construction by Eugen J. Heady of Smith Currie & Hancock, which is below. This article was originally published in the Construction Connection Newsletter. See www.constructionconnection.com.)
Disputes arising on modern day construction projects typically involve extraordinarily complex factual scenarios, technical issues and legal issues. Were the ancients concerned with how to resolve problems involving construction? The principles of law pertaining to the built environment can be traced back several thousand years. Our modern civil justice system is founded on biblical principles and reflects a 4,000 year evolution of beliefs and knowledge of construction beginning with the earliest development of western civilization.
The earliest known principles of construction law can be found in the Code of Hammurabi. Hammurabi was the sixth king of Babylon and ruled from 1792 BC to 1750 BC. The Code of Hammurabi contained 282 laws inscribed on twelve stone tablets which were placed in public view. Hammurabi’s Code was one of the earliest written codes of law in recorded history. Several of the laws pertained to the built environment:
229 If a builder builds a house for someone, and does not construct it properly, and the house which he built falls in and kills its owner, then that builder shall be put to death.
230 If it kills the son of the owner, the son of that builder shall be put to death.
231 If it kills a slave of the owner, then he shall pay, slave for slave, to the owner of the house.
232 If it ruins goods, he shall make compensation for all that has been ruined, and inasmuch as he did not construct properly this house which he built and it fell, he shall re-erect the house from his own means.
233 If a builder builds a house for someone, even though he has not yet completed it; if then the walls seem toppling, the builder must make the walls solid from his own means.
The Hammurabi system of justice included the initial presentation of the law of retribution, which the Hebrew Bible refers to as the concept of “an eye for an eye” and which the Romans often referred to using the Latin phrase lex talionis. Significantly, Hammurabi’s Code establishes the concept of civil damages, whereby one must pay compensation for defective work – a concept that has survived to this day.
As laws pertaining to the built environment evolved, building codes were also established and evolved over thousands of years. Modern day building codes are intended to protect the public health, safety and general welfare as they pertain to the built environment. The same was true in antiquity. For example, the Bible contains some of the earliest evidence of the development of uniform building and construction codes. In biblical times, the Israelites utilized a classic form of residence called the four room Israelite house. The Israelites utilized its flat roof as a place to sleep and stay cool at night. Obviously, if the Israelites built a flat roof with no wall around it then they would create a fall hazard where someone could easily fall and be injured. In what may be the earliest evidence of a building code, the Bible addressed this issue directly. Deuteronomy 22:8 states:
When you build a new house, make a parapet around your roof so that you may not bring the guilt of bloodshed on your house if someone falls from the roof.
The Bible also addresses other public safety and health issues involving the built environment and suggests an apparent methodology for performing a toxic mold remediation. Leviticus 14:39-45 describes the procedure the Israelites were to follow when mildew was found in the home:
On the seventh day the priest shall return to inspect the house. If the mildew has spread on the walls, he is to order that the contaminated stones be torn out and thrown into an unclean place outside the town. He must have all the inside walls of the house scraped and the material that is scraped off dumped into an unclean place outside the town. Then they are to take other stones to replace these and take new clay and plaster the house. If the mildew reappears in the house after the stones have been torn out and the house is scraped and plastered the priest is to go and examine it and, if the mildew has spread in the house, it is a destructive mildew: the house is unclean. It must be torn down—its stones, timbers and all the plaster—and taken out of the town to an unclean place.
Translations of the Hebrew Bible vary and this passage has been variously translated by biblical scholars to refer to mold, mildew and the plague of leprosy. In any event, the suggested remediation methodology is harsh. Moreover, there is no suggestion offered as to any compensation and it appears that any financial loss would be borne alone by the unfortunate homeowner.
Fast forwarding, American law regarding the built environment began a relatively rapid evolution beginning in the mid-1800s.
While the evidence of laws and codes involving the built environment dates back over 4,000 years, construction law as a distinct area of legal practice was first recognized in the United States in the mid-1970s when the American Bar Association formed the Forum on the Construction Industry.
Tupelo Mississippi just ran into a problem: the bids that it solicited for its new aquatic center came in way too high…the lowest bidder placed a bid that was $1.4 million over budget. Many times public works bid solicitations come in over budget because there are not enough bidders: that wasn’t the case in Tupelo, where six contractors placed a bid for the project, which was budgeted at $12 million dollars at max.
The Tupelo aquatic project is designed to put a 45,000-square-foot complex at Veterans Park. With submitted bids ranging from $13.4 million to $15.2 million, the city is now being forced to reject all bids and work with its architects to find a way to make the project less expensive.
While the larger than expected bids may not be great for Tupelo’s plans for a state of the art aquatic center, the bids may be a sign that construction companies are finally starting to find work again, and are basing their bids not just on keep revenue flowing, but also keeping profits healthy. For years now, many construction companies have kept their prices low to get projects, needed cash, and keep workers. But with that model, profits were often scuttled altogether in order to get the job. Higher prices may be sign that those days are finally coming to an end, and the construction industry is on its way back to health.
On many projects, mechanics lien claims are substantially limited or destroyed because the owner did not know the claimant was working on the Project. In most states, pre-lien notices are required in order to file a lien claim, and waiting to provide the notice can limit lien rights.
Providing a notice that work is being performed or materials are being delivered is, in many States, required either by statute or by contract. While this may seem like just another paperwork headache, it is a vital part of the construction process that should not be overlooked.
Many notices are not given simply due to inadvertence or not knowing the statutory or contractual requirements. But notices are also kept back for another reason: many contractors and suppliers think that providing a notice will create animosity on the project.
On a normal project, nothing could be further from the truth. Pre-lien notices, which are usually provided at the beginning of a project, are simply informational. The notices let the owner and the general contractor know who is working on the project so that everyone knows everyone. Think of notices as sort of an introduction…an introduction that protects you when payment is not made.
To file a pre-lien notice on one of your projects, visit http://lienitnow.com.