Nuts & Bolts | Construction Law Blog

The post was updated on December 7, 2021, to note litigation pending in federal court that is blocking enforcement of the federal contractor vaccine mandate nationwide.

In furtherance of his “Path Out of the Pandemic: COVID-19 Action Plan,” President Biden issued Executive Order 14042, which imposes COVID-19 vaccination and workplace safety requirements on federal contractors. Contractors who do business with the federal government should be aware of this federal mandate because it is likely to impose significant obligations with respect to requiring that employees be vaccinated for COVID-19 and implementing certain COVID-19 safety measures in the contractor’s workplace.

The potential ramifications of performing construction without being properly licensed can be severe. Fines and penalties are only the tip of the iceberg. For example, in several states, a contractor that is not properly licensed is precluded from filing a mechanic’s lien. In other states, an unlicensed contractor is precluded from bringing a lawsuit to recover amounts due and owing for its work. California imposes an even harsher punishment — unlicensed contractors may be required to disgorge monies paid for work performed without a license. Finally, several states impose criminal penalties for failure to comply with licensing statutes.

A claimant’s ability to file a mechanic’s lien against an owner’s interest in leased property is often a complicated analysis. Missouri law provides that “any person who shall do or perform any work or labor upon land … for any building, erection, or improvements upon land … upon or by virtue of any contract with the owner or proprietor thereof, or his or her agent, trustee, contractor or subcontractor” shall have a lien upon the building, erection or improvements. R.S. Mo. § 429.010 (emphasis added).