ETC - Licenses Etc Ezine

Your monthly ezine for the Florida construction industry with valuable information, resources, ideas and tips from the experts (Chrissi Jackson and Kristie Cook)
at Licenses, Etc, Inc.
Comments/Questions: 239.777.8321 or 239.777.1028
Don’t miss us! Be sure to add etc@licensesetc.com to your address book and/or safe sender’s list.

CHINESE DRYWALL CLAIMS IN FLORIDA

By Michelle Krone, Partner at the law firm of Kubicki Draper
Board Certified in Construction Law
kubickidraper.com

If you are a contractor, subcontractor or supplier in Florida, you are undoubtedly aware of the issues recently uncovered associated with drywall imported from China. Several large agencies are now involved in the investigation including the U.S. Environmental Protection Agency, the Consumer Product Safety Commission and the Florida Department of Health. These agencies approach the issue from a health and public safety concern.

The drywall in question has been linked to Knauf plasterboard Tianjin Co., Ltd. Of China. It has been reported that not all drywall from China is contaminated, but only drywall mined from a certain area in China.

Chinese drywall is being investigated because of sulfur compound emissions identified as carbon disulfide, carbonyl sulfide, and hydrogen sulfide. The emissions are causing corrosion of certain components in homes such as the copper components of air conditioning units and electrical wiring. Testing performed by Environ, an environmental testing company hired by Lennar Homes, indicated that emission of the sulfur compounds can continue for at least 2 years and there is no definitive data indicating when or if the Chinese drywall will cease the emission.

Although there have been health related complaints reported by occupants of homes with Chinese drywall, there has been no information of any health related illness linked to the Chinese drywall to date. There have been no health advisories or warning issued.

The time frame reported for construction of homes with affected drywall seems to be post Katrina (2005) and has not been associated with FGD or synthetic gypsum.

The Herald Tribune reported on February 1, 2009, that shipping records show at least 550 million pounds of Chinese drywall has arrived in U.S. ports since 2006 and 313 million pounds into Florida ports. (Some of it good some of it bad.)

It has been reported that the builders affected to date include (but are not limited to) Taylor Morrison, WCI Communities, Meritage Homes, Ryland Homes, Lennar, Standard Pacific Homes, and Avibuchon. If you performed drywall installation for any of these builders during the reportedly affected time frames, you may shortly receive notice from that builder of an affected home or home(s).

One of the first steps to take is to report the claim to your insurance company. Although there may not be coverage for some or all of the damages being claimed, your insurance company may be obligated to provide you with a defense. This means that they would insure you had competent legal counsel to defend you in any law suit filed and they would pay the bill.

Another issue to be resolved is to determine how you want to handle the demand. You should consult a board certified construction attorney on your options as soon as possible, as there may be time deadlines imposed on the response. If there is an offer to cooperate with the builder on repairs and you are in a position to do so, then that is certainly an option. In any event, you want to make sure you are afforded an opportunity to inspect the reportedly affected homes and seek counsel.

If you are able to inspect any of the residences containing the suspect drywall, it is a good idea to document your inspections including but not limited to, with photographs, notes of items including any indication on the drywall of the manufacturer, any ASTM markings, the number of affected boards, any resulting damage you see to appliances, fixtures, air conditioners, etc. Also, make note who was there and what company they are from. If possible, you should be present before, during, and after any destructive testing.

Chances are neither the U.S. supplier, installer or the builder had any reason to know that drywall imported from China would perform any differently than drywall from the U.S. The party in the spotlight, so to speak, is the manufacturer/exporter and it will be interesting to learn whether they knew or should have known of the potential for this sulfur contamination.

This article is not intended to provide any legal advice or contain information that if read would create any attorney client relationship. This article is for informational purposes only and if you have any legal questions, you should contact an attorney immediately. Michelle Krone is a board certified construction attorney with the law firm of Kubicki Draper and is associated with most major insurance companies as approved panel counsel. If your insurance company is going to provide you a defense feel free to request Michelle Krone at Kubicki Draper.

Michelle M. Krone, Partner, Board Certified Construction Attorney, Kubicki Draper, 13350 Metro Parkway, Suite 401, Ft. Myers, Florida 33966, Main: 239-461-8123, Direct Line: 239-461-8103, Fax: 239-989-0700

		Your monthly ezine for the Florida construction industry with valuable information, resources, ideas and tips from the experts (Chrissi Jackson and Kristie Cook) at Licenses, Etc, Inc. Comments/Questions: 239.777.8321 or 239.777.1028 Don’t miss us! Be sure to add etc@licensesetc.com to your address book and/or safe sender’s list.
		Table of Contents - April 2009 Message from Kristie & Chrissi Chinese Drywall Claims in Florida SBA Express Important Dates Beating the Marketing Drum Classifieds
		Message from the Gals Can you believe it's already April? Where has 2009 gone? First quarter is already over! We hope it treated you well, as things seem to be picking up, however slowly, in our industry. We have a full newsletter for you this month. First things first, though. We are quickly approaching the May 1 deadline for all Florida businesses and foreign companies to file their Annual Report with the Division of Corporations. This can be done by visiting www.sunbiz.org. We will be running through our entire client list to ensure everyone gets this done. If you have not, we will have an associate call you within the next two weeks to ensure it does get done. There is a $400 late penalty if it's not filed by May 1 and we want you to avoid this unnecessary cost. If you have any questions in the meantime, please don't hesitate to call us. Our favorite contractor's attorney, Michelle Krone, has written an excellent and timely article about Chinese drywall for our clients. It is our main article this month. Don't miss it! This could affect your business. We also have provided information from our friend John Tenney at Fifth Third Bank about SBA Express loans. If you're in need of an SBA loan, be sure to read this. Thank you for your continued support and your business! Please feel free to pass this on to your friends and colleagues. We hope the rest of your April is Awesome and that you have a Marvelous May! Best regards, Kristie & Chrissi

		CHINESE DRYWALL CLAIMS IN FLORIDA By Michelle Krone, Partner at the law firm of Kubicki Draper Board Certified in Construction Law kubickidraper.com If you are a contractor, subcontractor or supplier in Florida, you are undoubtedly aware of the issues recently uncovered associated with drywall imported from China. Several large agencies are now involved in the investigation including the U.S. Environmental Protection Agency, the Consumer Product Safety Commission and the Florida Department of Health. These agencies approach the issue from a health and public safety concern. The drywall in question has been linked to Knauf plasterboard Tianjin Co., Ltd. Of China. It has been reported that not all drywall from China is contaminated, but only drywall mined from a certain area in China. Chinese drywall is being investigated because of sulfur compound emissions identified as carbon disulfide, carbonyl sulfide, and hydrogen sulfide. The emissions are causing corrosion of certain components in homes such as the copper components of air conditioning units and electrical wiring. Testing performed by Environ, an environmental testing company hired by Lennar Homes, indicated that emission of the sulfur compounds can continue for at least 2 years and there is no definitive data indicating when or if the Chinese drywall will cease the emission. Although there have been health related complaints reported by occupants of homes with Chinese drywall, there has been no information of any health related illness linked to the Chinese drywall to date. There have been no health advisories or warning issued. The time frame reported for construction of homes with affected drywall seems to be post Katrina (2005) and has not been associated with FGD or synthetic gypsum. The Herald Tribune reported on February 1, 2009, that shipping records show at least 550 million pounds of Chinese drywall has arrived in U.S. ports since 2006 and 313 million pounds into Florida ports. (Some of it good some of it bad.) It has been reported that the builders affected to date include (but are not limited to) Taylor Morrison, WCI Communities, Meritage Homes, Ryland Homes, Lennar, Standard Pacific Homes, and Avibuchon. If you performed drywall installation for any of these builders during the reportedly affected time frames, you may shortly receive notice from that builder of an affected home or home(s). One of the first steps to take is to report the claim to your insurance company. Although there may not be coverage for some or all of the damages being claimed, your insurance company may be obligated to provide you with a defense. This means that they would insure you had competent legal counsel to defend you in any law suit filed and they would pay the bill. Another issue to be resolved is to determine how you want to handle the demand. You should consult a board certified construction attorney on your options as soon as possible, as there may be time deadlines imposed on the response. If there is an offer to cooperate with the builder on repairs and you are in a position to do so, then that is certainly an option. In any event, you want to make sure you are afforded an opportunity to inspect the reportedly affected homes and seek counsel. If you are able to inspect any of the residences containing the suspect drywall, it is a good idea to document your inspections including but not limited to, with photographs, notes of items including any indication on the drywall of the manufacturer, any ASTM markings, the number of affected boards, any resulting damage you see to appliances, fixtures, air conditioners, etc. Also, make note who was there and what company they are from. If possible, you should be present before, during, and after any destructive testing. Chances are neither the U.S. supplier, installer or the builder had any reason to know that drywall imported from China would perform any differently than drywall from the U.S. The party in the spotlight, so to speak, is the manufacturer/exporter and it will be interesting to learn whether they knew or should have known of the potential for this sulfur contamination. This article is not intended to provide any legal advice or contain information that if read would create any attorney client relationship. This article is for informational purposes only and if you have any legal questions, you should contact an attorney immediately. Michelle Krone is a board certified construction attorney with the law firm of Kubicki Draper and is associated with most major insurance companies as approved panel counsel. If your insurance company is going to provide you a defense feel free to request Michelle Krone at Kubicki Draper. Michelle M. Krone, Partner, Board Certified Construction Attorney, Kubicki Draper, 13350 Metro Parkway, Suite 401, Ft. Myers, Florida 33966, Main: 239-461-8123, Direct Line: 239-461-8103, Fax: 239-989-0700
		* Highly Recommended * Reducing Costs We're all looking for cost-cutting ideas to allow us to survive the economy. You may want to explore how you can cut workers' comp costs through Employee Leasing. If you have any field employees, Employee Leasing may provide a nice solution to high premiums. Contact Chrissi Jackson (239.777.1028) at Licenses, Etc. for more information.
		SBA Express From 5/3 Bank SBA Express Highlights: Loans in the amount of $15,000, $25,000 and $50,000 Rate is prime +4.99% Total term of SBA Express is 7 years: Line of credit for first 3 years, client can borrow and repay funds as needed. At the end of the first three years, the balance, if there is one, is termed out over four years. Access to the funds at closing and then future access through 53direct.com or through the Financial Center (no checks or card are provided) No Annual Fee (at closing, there is a $150 documentation fee and a $150 loan closing fee) If yes to any of these questions, you do not qualify for an SBA express. Do any owners of 20% or more of the applicant business have more than $100,000 in liquid assets excluding retirement assets? Is the applicant business a franchise? Do any of the owners of the applicant business have any ownership in any other small business? Does the applicant business or any owner have an SBA loan? Are any owners or spouses of owners of the applicant business employed by Fifth Third Bank, SBA, the US government or any branch of the military? Has any owner of the applicant business ever been arrested for any crime other than minor traffic violations? Are any owners of the applicant business NON U.S. citizens? Are the annual sales of the applicant business more than $5,000,000? Does the applicant business have more than 100 employees? Is the applicant business or any owner delinquent on any loan, child support obligations or taxes of any kind? For more information, contact your local Fifth Third Bank or John Tenney, Financial Center Manager III – Assistant Vice President, The Strand Financial Center - MD B35311, 5636 Tavilla Circle Naples, Florida 34110, Office: (239) 514-1250 Fax: (239) 514-0601, Email: John.Tenney@53.com

		Important Dates Corporate, LLC and Parntership annual reports must be filed with the state by May 1. Next CILB meeting is May 13-15 in Orlando. Next exam dates are June 16-17. Deadline to register for the June exams is May 15.
		Beating the Marketing Drum The key to survival and profits in today's market is word-of-mouth marketing. It also happens to be the most cost-effective and provides the highest returns on investment. People are much more likely to believe what their friends, family and neighbors have to say about a company than they are any advertisement. So what can you do to increase referrals? Create a referral program that rewards your customers for their referrals. Rewards can be gift certificates for your own company or local businesses. Give one to the referring customer and one to the new customer. Offer a two-for-one or similar type of discount for a prospect and someone they know who may need the same type of service or product. For example, if you're installing new windows or offer a maintenance service, you can pass on the savings of making only one trip when you can serve the prospect and their neighbor at the same time. Keep your name in front of customers and your own contacts with a regular newsletter. The most cost-effective way (virtually free) is to take advantage of email. Obtain their permission, of course, so you won't be charged with Spam, which can carry hefty penalties. We recommend iContact as the service to manage and create your email newsletters. For more information, click here: http://www.icontact.com. Good luck!
		What Our Clients Have to Say “My day to day is so busy, I didn't have time to do this on my own. You made it less time consuming. Everything was very easy and successful. I wouldn't change a thing." Chris Newcom, Bast Floors, Tampa, FL
		Classifieds Do you have books to sell? We sometimes get questions from callers about where they can find used books for their exams. We'd like to start a list so we can refer them to our clients who who'd like to recoup a portion of their costs. Please contact Kristie (239.777.8321) or Chrissi (239.777.1028) to get your name and number on the list. Have something you want to sell? A position to fill? A need for a subcontractor? Contact Chrissi (239.777.1028, Chrissi.Jackson@LicensesEtc.com) or Kristie (239.777.8321, Kristie.Cook@LicensesEtc.com) for information about advertising in our Classifieds section in ETC. Our current subscriber list consists of over 1,000 people in construction and related industries throughout the state of Florida and beyond. Your Classified ad will also be posted on our website, visited by hundreds every week.
		Fine Print Licenses, Etc., Inc. Copyright Licenses, Etc, Inc., 2008, 2009 Have a question for the experts at Licenses, Etc.? Call Kristie at 239.777.8321 or Chrissi at 239.777.1028 or visit www.LicensesEtc.com ALL CONTENTS OF THIS E-MAIL ARE COPYRIGHT 2008, 2009 BY LICENSES, ETC., INC. ALL RIGHTS RESERVED. You may reproduce any article with the inclusion of the following footer: “Copyright 2008, 2009 by Licenses, Etc. Written by Kristie Cook and Chrissi Jackson. Visit www.LicensesEtc.com for more information.” Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to 5 years in prison and $250,000 in fines. Are you having trouble receiving ETC and Licenses, Etc.’s messages? Ensure that ETC gets delivered to your email box. Add etc@licensesetc.com to your address book and/or safe sender’s list. NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. Disclaimer: The inclusion of an ad in ETC does not constitute an explicit endorsement. It does mean that as far as we know, the product is not a rip-off. When we really like a product and want you to buy it, we'll tell you explicitly. Otherwise, view these ads the way you would commercials on TV or display ads in the back of your favorite magazine. Check them out. Make a decision. If you don't like, ask for a refund.