TOOLS FOR TOUGH TIMES

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TOOLS FOR TOUGH TIMES

• How to Protect Your Company From Nonpayment and
  Better Manage Tight Economic Conditions

October 30, 2008 Audio Conference
2
TOOLS FOR TOUGH TIMES
Slide 2

• PANELISTS
• Chris Monek, AGC Moderator
• Phil Beck, Smith, Currie Hancock LLP
• Hal Gray, RBSPG
• Russell Patterson, RBSPG
• RBSPG Ragsdale, Beals, Seigler, Patterson
  Gray, LLP

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• This program is intended to be a source of
  useful, general information and to alert the
  audience to issues they should consider. It is
  not intended to provide specific recommendations
  for specific circumstances, as recommendations
  may vary depending upon the specific
  circumstances and state law involved. The
  information provided is not intended to
  constitute legal advice or to serve as a
  substitute for obtaining the advice and counsel
  of qualified and experienced professionals in
  response to specific situations.

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TOOLS FOR TOUGH TIMES
Slide 4

• TOPICS
• Creating Using Contractual Statutory
  Protections
• Other Front-End Planning Issues
• Managing the Risk of Nonpayment During
  Construction

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TOOLS FOR TOUGH TIMES
Slide 5

• TOPICS (contd)
• Protecting Against Downstream (Subcontractor/Suppl
  ier) Insolvency
• What To Do When Cash Flow Disappears
• Back-End Damage Control Issues
• Protecting Your Assets
• Dealing With Bankruptcy

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CONTRACTUAL STATUTORY PROTECTIONS
Slide 6

• Contractual Right to Financial Assurance See,
  e.g., ConsensusDOCS 200, 4.2 AIA A201,
  2.2.1
• Statutory Lien Rights
• Bond Rights
• Other Forms of Security (e.g., Letter of Credit,
  Personal Guaranty, Parent Company Guaranty)
• Other Statutory Payment Protection

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CONTRACTUAL STATUTORY PROTECTIONS (contd)
Slide 7

• Pay-If-Paid Pay-When-Paid Clauses
• Contractual Remedies for Nonpayment (Interest,
  Suspension of Work, Termination, Etc.)
• Waiver of Lien Rights
• Payment for Extra Work See, e.g., ConsensusDOCS
  200, Art. 8 AIA A201, Art. 7 (CCD)
• Retainage (Amount Timing)
• Joint Checks Certification of Payment

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OTHER FRONT-END PLANNING ISSUES
Slide 8

• Assessing Financial Risk
• Determining Financial Strength of the Owner
• Pre-Qualifying the Other Parties
• Pre-Qualifying the Construction Lender
• Securing Your Position

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MANAGING THE RISK OF NONPAYMENT
Slide 9

• Require Financial Assurance (Show Me The Money!)
  See, e.g., ConsensusDOCS 290 290.1 (in
  Written Materials)
• Preserve Lien and Bond Rights (Use Them or Lose
  Them)
• Pace Payments and Progress
• Ask for Money Owed
• Consider Alternative Payment Sources
• Know Your Rights, Obligations Deadlines
• Act Timely

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DOWNSTREAM PROTECTION
Slide 10

• Dealing With Subcontractor
• and Supplier
• Insolvency and Bankruptcy

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WHAT TO DO WHEN CASH FLOW DISAPPEARS
Slide 11

• Company Survival
• Deciding Which Debts to Pay
• Quarantining Problem Jobs/Protecting Good Jobs
• Workouts
• Dealing With Lenders
• Owner Bankruptcy

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BACK-END DAMAGE CONTROL ISSUES
Slide 12

• The Risk of Robbing Peter to Pay Paul
• The Need to Satisfy Payroll Tax (941) Liability
• The Need to Satisfy Other Tax Liabilities

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PROTECTING YOUR ASSETS
Slide 13

• Practical Advice for
• Surviving the Storm

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BANKRUPTCY
Slide 14

• Bankruptcy as a Shield
• Bankruptcy and the Threat of Bankruptcy as a
  Sword

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CONCLUSION
Slide 15

• Question Answer
• Concluding Comments

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TOOLS FOR TOUGH TIMES
Slide 16

• PANELISTS
• Chris Monek, AGC Moderator
• Phil Beck, Smith, Currie Hancock LLP
• Hal Gray, RBSPG
• Russell Patterson, RBSPG
• RBSPG Ragsdale, Beals, Seigler, Patterson
  Gray, LLP

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For more information, please contact

• Christopher S. Monek
• Associated General Contractors of America
• 2300 Wilson Boulevard, Suite 400
• Arlington, VA 22201-3308
• Phone [phone]
• Fax [phone]
• E-mail monekc_at_agc.org

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For more information, please contact

• Philip E. Beck, Esq.
• Smith, Currie Hancock LLP
• 2700 Marquis One Tower
• 245 Peachtree Center Avenue NE
• Atlanta, Georgia 30303-1227
• Phone [phone]
• Fax [phone]
• Email pebeck_at_smithcurrie.com

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For more information, please contact

• Herbert H. (Hal) Gray, III, Esq.
• Ragsdale, Beals, Seigler, Patterson Gray, LLP
• 2400 International Tower-Peachtree Center
• 229 Peachtree Street, N.E.
• Atlanta, GA  30303
• Phone [phone]
• Fax [phone]
• Email halgray_at_rbspg.com

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For more information, please contact

• W. Russell Patterson, Jr., Esq.
• Ragsdale, Beals, Seigler, Patterson Gray, LLP
• 2400 International Tower-Peachtree Center
• 229 Peachtree Street, N.E.
• Atlanta, GA  30303
• Phone [phone]
• Fax [phone]
• Email wrpjr_at_rbspg.com

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TOOLS FOR TOUGH TIMES

• THANK YOU FOR
• YOUR TIME

October 30, 2008 Audio Conference