1. Contractor Information - How do I know a company is "legitimate"?
2. Lien Protection - How do I protect myself?
3. Should I sign an AIA contract?
4. How can I get coverage for EIFS, if a claim is made against me?
5. What can I do about mold?

1. Contractor Information - How do I know a company is "legitimate"?
Businesses such as professional corporations, limited partnerships and LLCs must register with the states where they are doing business. Either call the state's Secretary of State's office (Corporation Division) or research its website to find if the business is registered. Some companies do business under several names. The Secretary of the State's office can also let you know if that name is properly registered with the state.
If you you are investigating a contractor or developer, you also need to verify the contracto's or developer's licensing with the state's Construction Contractor's Board. Require the contractor or developer to provide you with confirmation of its insurance and bonding before work is begun.

2. Lien Protection - How do I protect myself?
In your contract, require your contractor to keep the project clear of liens and to pay off all liens if filed. Payments to the contractor should be made contingent on the contractor and all subcontractors signing contingent lien releases. You can also write two-party checks. These actions will help you defend against lien claims.

3. Should I sign an AIA contract?
Any connstruction contract should be reviewed for you by an attorney prior to signing it. Various organizations have draft contract forms. These forms may or may not adequately protect you. AIA has developed a good set of contracts for construction projects, covering all or most of the various legal relationships in a construction project. Generally they can be easily modified to meet your needs.

4. How can I get coverage for EIFS, if a claim is made against me?
There is significant litigation in the Pacific Northwest regarding claims for water intrusion and mold caused by synthetic stucco and EIFS (which is short for Exterior Insulation Finishing Systems). Because of the current dramatic increase in litigation regarding buildings clad with EIFS, all of the parties to a project including design professionals should be cautious. It is becoming more difficult to obtain insurance that covers claims arising out of EIFS. The building owner should should insist upon carefully reviewing the contract or insurance policies applicable to the project. Those polocies may often clearly set out whether claims arising out of EIFS are, or are not covered. Determining whether this coverage exists is equally important for the contractor to fdetermine for itself. Further, these claims often impact the design professionals. The errors and ommisions policies for the design professionals, which generally cover claims for negligence against those design professionals often cover claims for EIFS, but not in all instances. Caution should be taken to carefully review the coverage terms in these policies for the design professionals.

5. What can I do about mold?
Mold is a naturally occuring plant. Mold exists, in some quantities in almost every space. Generally, the occurance of mold is only problematic in large and persistant qauntities. When large quantities of mold are observed, you should investigate to indentify the source of moisture that is creating the mold-friendly environment. Often times, there is a relatively obvious source of water in the building envelope that has not been made waterproof or an unusually high water moisture content within the building. Or perhaps for a specific reason, such as burst pipe.