Shown in the photo (from left) are Gary Fowler, MCAG; Bill Flynn, Mallory & Evans Service Company; Senator John Chambliss; Jon Sterling, Maxair, Inc. and John McKenney, McKenney's, Inc.

MCAG president John McKenney, MCAG senior vice president Jon Sterling, MCAG Government Affairs chairman Bill Flynn and MCAG executive vice president & CEO Gary Fowler meet with Georgia Senator Saxby Chambliss. The MCAG delegation had the opportunity to compliment the senator on his conservative voting record and discussion on measures that will create jobs and remove obstacles to create economic growth.

MCAG'S ANNUAL CASINO NIGHT A HUGE SUCCESS!

The Mechanical Contractors Association of Georgia recently hosted its annual Casino Night at Maggiano's in Atlanta.

A near-capacity crowd of MCAG members and guests attended the event, which began with a cocktail and appetizer reception and then continued with a lavish family-style dinner.

Following dinner, the gaming tables opened and welcomed an excited and enthusiastic crowd.  

Other highlights of the evening included karaoke performances by several of those present.  

Participants later used their "winnings" to purchase raffle tickets, and the evening concluded with drawings for a wide variety of prizes. 

Below: Some of the many lucky prize winners get ready to claim their prizes.

   

   
 

LEGAL BRIEFING:

DOING BUSINESS IN OTHER STATES     

Everybody seems to be doing it - or at least trying. The search for suitable project contracting opportunities is spreading to other states and regions. But before jumping aboard in the pursuit of work, a contractor must make sure it is fully prepared to perform such work, even before it begins to bid, propose or negotiate for contracts in other states, let alone contract or perform.

A significant risk and "trap for the unwary" contractor is failure to procure and maintain any required contractor licensing and certification to do business in a state other than its residence.   In many states, bidding, contracting or performing work without the required licensing can subject the contractor to drastic consequences, which may include rendering the resultant contract void and unenforceable, denial of any right to receive payment or pursue lien or payment bond claims, (perhaps even return of payment already received), and preclusion from even seeking relief in the courts of that state, separate and apart from the various civil, criminal and administrative sanctions that can also be imposed. The old adage is certainly applicable here that cautions: "Look before you leap!" It is essential to be fully and currently informed and compliant of the licensing and certification requirements in foreign jurisdictions before you even start pursuing work.

This is recently illustrated in a decision of the Georgia Court of Appeals that applied the "door closing" defense to bar a lien claim by an unlicensed specialty trade contractor. Citing to the licensing requirements in the Georgia Code, the Court noted that a person may engage in the particular specialty contracting business only if it has a valid license from the appropriate division. Thus, the Court held that to recover on an agreement to perform such specialty trade work, a contracting company must show that it complied with this licensing requirement. Otherwise the agreement is void and unenforceable and the unlicensed contractor cannot compel payment for work performed or recover for the value of the work under a theory of unjust enrichment or quantum meruit, and it cannot enforce lien or payment bond rights. In fact, the Georgia general contractor licensing status is even more definite and explicit in barring such payment entitlement of an unlicensed contractor by explicitly providing that a contract by an unlicensed contractor "shall be unenforceable in law or in equity by the unlicensed contractor" and that "no lien or bond claim shall exist in favor of the unlicensed contractor for any labor, services, or materials provided under the contract."

Of course, these are applications of Georgia law, but "turnabout is fair play" and many other states employ substantially the same concepts to bar claims, for example, of Georgia contractors invading their borders to seek work without the proper or current licensing to perform it. Just looking at Georgia's immediate neighbors is instructive.  

Alabama courts have consistently ruled that an unlicensed contractor cannot recover under a contract or enforce a mechanic's lien since "[e]xpress or implied contracts entered into by an unlicensed general contractor are null and void because they violate public policy." Indeed, the Alabama Supreme Court has recently ruled that a non-resident subcontractor that had not obtained a certificate of authority to transact business in Alabama could not bring an action to enforce payment under a subcontract which shall be null and void.

Tennessee has evolved a different approach. Prior to 1980, unlicensed contractors could not maintain breach of contract or quasi-contract actions against owners. In 1980, the General Assembly mitigated the harsh effect of the rule by amending its applicable code section which now more leniently provides that an unlicensed contractor shall not be permitted to recover any damages in any court other than actual documented expenses that can be shown by clear and convincing proof. Furthermore, somewhat uniquely, in Tennessee, joint venturing is not the easy solution to licensing problems, since both members of the joint venture must be appropriately licensed, which is similar to the General Contractor and Residential contractor licensing requirements under Georgia law.

 Similarly, in Florida, an unlicensed contractor has no right to seek payment or to enforce a contract, lien or payment band claim.

 So remember the Boy Scout motto - "be prepared" - when you search for work in other jurisdictions and make sure you know what the applicable licensing and certification requirements are and assure that you are in compliance.

MCAG representatives appointed to

Governor's Panel for Workforce Development

Above Donnie Woodham in center of picture addresses the first meeting of the Governor's Panel on Workforce Development on the MCAG and Local Union 72 apprenticeship program.

MCAG representatives appointed to the Governor's Panel for Workforce Development include Donnie Woodham, McKenney's, Inc.; Vann Cleveland, The Cleveland Group, Inc.; and Gary Fowler, MCAG.

The Panel has recently been established to evaluate current construction skilled labor needs throughout Georgia, the availability of skilled craft labor and what skilled trades the Georgia construction industry needs the most.

The Panel is considering putting in place a "Go Build Georgia" using the "Go Build Alabama" as a model.

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