INEFFECTIVE ESTOPPEL LETTERS AND LIEN RELEASES – A CASE STUDY (Construction Factoring) Bruce E. Loren, Esq. and Allen J. Heffner, Esq. | Oct 05 2018

The Estoppel Agreement (or sometimes called a no set-off letter) is a letter sent by the Factor, signed by the Account Debtor, confirming that an invoice to be purchased is due and owing and will be paid to the Factor without setoff, recoupment, defense, or counterclaim. No matter what type of receivables you are factoring, Factors should always try to obtain Estoppel Agreements from Account Debtors. It is an incredibly useful tool that increases the likelihood the Factor will get paid and extremely limits the Factor’s risk – so long as it is done properly.

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BRUCE LOREN TO CHAIR TWO DAY CONSTRUCTION FACTORING COURSE FOR THE INTERNATIONAL FACTORING ASSOCIATIONBruce E. Loren, Esq. | Oct 05 2018

The law firm of Loren & Kean Law is proud to announce that Bruce Loren will chair a construction factoring course (“Factoring Construction Receivables From A to Z”), sponsored by the International Factoring Association, in Las Vegas from October 25-26.Registration is still open with the IFA at https://www.factoring.org/ifaevents. Jennifer Fogg, President of TBS Factoring, LLC will be co-chair of the event and will offer her real-life experiences to complement the legal issues.Anyone who regularly purchases or is thinking about purchasing construction receivables will benefit from this comprehensive course.

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Subcontractors Are Entitled to Make a Claim on the General Contractor’s Surety Bond Despite a Valid Pay-if-Paid Clause in the SubcontractBruce E. Loren, Esq. and Kyle W. Ohlenschlaeger, Esq. | Oct 04 2018

Surety bonds in Florida are subject to claims even if the subcontractor has agreed to a valid pay-if-paid clause in its contract with the general contractor. This is true even if the pay-if-paid clause expressly indicates that the protections extend to the general contractor’s surety. Only when the contract expressly extends the pay-if-paid clause to the bond and the surety has issued a statutory “Conditional Payment Bond” will the surety be protected by the pay-if-paid provision. This article assists subcontractors to identify a “Conditional Payment Bond” and outlines the procedures for making valid claims.

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POINT OF VIEW: More transparency needed for proposed diversity programBruce E, Loren, Esq. . | Sep 19 2018

No one should condone discrimination of any kind. Certainly, government contracts spending public tax dollars should be awarded based upon the lowest price to the most qualified contractor, regardless of race or gender. Rather than support these simple common-sense approaches, The Palm Beach Post’s Sept. 4 editorial minimizes a complex issue. At the same time, it insults the integrity of the hardworking men and women, of all races, who have successfully grown their construction businesses by using Palm Beach County’s existing Small Business Enterprise program.

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Do Florida employers have to pay employees for unused vacation time at termination? Maybe … it depends.Bruce E. Loren, Esq. and Michael G. St. Jacques, Esq. | Aug 20 2018

Clients regularly ask what happens to vacation time when employees resign or are terminated from their employment. What if the employee resigned without providing any notice, are they still entitled to payment of PTO? It depends on the “deal” entered into by the employer and employee (and the state). Keep in mind that this article only applies to Florida law. Employers doing business in multiple states must confirm the individual laws of each state.

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EXEMPTIONS TO CONTRACTOR LICENSINGBruce E. Loren, Esq. and Kyle W. Ohlenschlaeger, Esq. | Aug 11 2018

Unlicensed contractors can often be found on construction projects. Owners will hire unlicensed contractors to obtain a reduced price, which is sometimes more important at the beginning of a project than quality of the work. This creates problems for owners when the unlicensed contractor doesn’t have proper insurance or fails to correct defective work. This also creates issues for licensed contractors, who have to compete with unlicensed contractors that do not bear the same overhead costs of compliance with licensure requirements.

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THE UNIQUE RISKS OF FACTORING CONSTRUCTION RECEIVABLESBruce E. Loren, Esq. and Allen J. Heffner, Esq. | Aug 10 2018

Generally, factoring construction receivables involves more risk that traditional factoring. However, there are many advantages to factor in this niche market, such as the additional security to Factors provided by lien and bond rights, and the possible reimbursement of attorneys’ fees and costs from Account Debtors. To be successful in this market, Factors must master technical knowledge of the construction industry and perform additional and continuous due diligence of its Client. If the Factor is willing to take these extra steps, it can be a great time to factor construction receivables.

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