for DBEs Risk Management Caterpillar 2011 Build Your Future Conference February 15, 2011 Presented by: Boyd O. Roberts III Hasselberg, Williams, Grebe, Snodgrass & Birdsall 124 SW Adams Street Suite 360 Peoria, IL 61602 Phone: (309) 637-1400 Fax: (309) 637-1500 Email: [email protected]
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For DBEs Risk Management Caterpillar 2011 Build Your Future Conference February 15, 2011 Presented by: Boyd O. Roberts III Hasselberg, Williams, Grebe,
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for DBEs
Risk ManagementCaterpillar 2011 Build Your Future Conference
– Consider a payroll service Want someone to regularly examine your business
and provide ideas/suggestions
for DBEs Attorney
Incorporation v. limited liability company v. sole proprietorship – Incorporation benefits
• Perpetual existence• Shareholders not liable for debts of corporation• Ownership easily transferred (shares)• Tax advantages
for DBEs
– Corporate formalities must be observed • By-laws• Annual meetings w/ minutes• Annual reports with Secretary of State• Articles of Incorporation• Capitalization• Board of Directors and officers
for DBEs
LLC (Limited Liability Corporations) – Taxed like partnership (each member taxed)– Same liability insulation enjoyed by corporations– Perpetual existence– Ownership easily transferred– Easier to manage then corporation
for DBEs
Sole proprietorship – No personal liability protection– No tax advantages
for DBEs
Partnership – Partnership agreement specifies management– Each general partner is liable for actions of another– Each partner is taxed individually
for DBEs
Employment issues Filing of mechanics liens or other claims Respond to claims filed against business All Corporations and LLCs must be represented by an
attorney in court under Illinois law.
for DBEsBidding a Job
Remember that you are bound by your bid numbers. Key is to adequately determine your break even point
and then add in profit. Adequately pricing the job is key
Continuation of work– Job must be completed even if there is dispute
for DBEs
Change Orders – More problems in this area than any other
– In writing
– Before additional or changed work commences
– End of job
for DBEs
Mechanic’s Liens (Secret lien)– Contractors liens v. Subcontractors liens– Recording of lien with Recorder of deeds– Notice to owner– Statue of limitations
• within 4 months after completion of work• file suit within 2 years after completion date
for DBEs
Notice provision – Where to send notice of default– Right to cure default
for DBEs
Venue/choice of law– Watch for foreign state venue provision
– Mandatory Arbitration
for DBEs
Attorney’s Fees– Prevailing party language is typical– What’s good for the goose should be good for the
gander– Watch for distinction in commercial settings though
for DBEs
Signatures– Make sure you have an original signed copy by
both parties– Signed by officer of business authorized to execute