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February 2025 The Contractor’s Advantage
HarrisonLawGroup.com (410) 832-0000 jwyatt@harrisonlawgroup.com
HIGH STAKES HOT POTATO Why Projects Aren’t Completed as Promised
I’m going to let you in on a dirty little secret I’ve learned from working in construction law: No project gets done on time or under budget. They either all take too long, there are cost overruns, or both. So, the owner of these construction projects that run over time and budget don’t want to pay a dime more than they’ve already agreed to. That means when they get to the end of the project, they either want to avoid paying full price because it wasn’t completed when expected, or the general contractor or subcontractors have incurred additional costs (due to no individual fault of their own). These mishaps result in insufficient funds at the end of the project, and not everyone can make money. That’s why on a project, owners can utilize change orders to retroactively adjust the work or cost of the project’s contract in some way. A back charge, also known as a deductive change order, is the subsequent reduction in the contract price and what someone can collect after the project. Usually, owners or general contractors issue back charges for wrongdoings. In these projects, where there are cost overruns or delays, a kind of “dance” occurs at the end of the project, with the general contractors passing down deductive change orders to the subcontractors and the subcontractors giving their own requests for additional compensation at the end of the project. Essentially, the general contractor and subcontractors are stuck jockeying for enough money to profit from the project. A significant delay is the most common reason for problems that causes this dance at the project’s end. For example, a general contractor might promise a beach hotel owner that the project will be completed by April, so it will be ready in May when beach season begins. The owner can then rent out rooms and make more money during the busy season. But then, the hotel isn’t finished until August, and there is a real problem in the hands of the general contractor. Usually, by this point, the owner will be distraught and issue back charges because, now, they’ve missed out on the prime rental season the contractor promised them. And the thing is, delays don’t happen in a vacuum; someone is at fault. So, the general contractor passes those back charges
down amongst the subcontractors and engages in a high-stakes game of hot potato, with everyone trying to pass the deductive change order to whomever they believe is the responsible party.
But the question is, who exactly is the responsible party?
On a construction project with hundreds of things happening at once, one will take the longest. That task that takes the longest, whether it’s digging the foundation, installing windows, or electrical wiring, is called the critical path. It’s deciding who was on that critical path and who took the longest on the project, which is really the hot potato changing hands between subcontractors. If everyone determines you are on the critical path, you’ll likely be stuck with that back charge. At the end of the day, commercial construction projects can be a struggle. That’s why Harrison Law Group is here to help. Our firm has experience asserting and
defending against back charges regarding project delays or other critical path errors and negotiating satisfactory resolutions to change orders and back-charge disputes. Call us at 410-832-0000 to get started.
-Jeremy Wyatt
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From Humble Beginnings to Global Success TERO ISOKAUPPILA AND HIS MUSHROOM-POWERED VISION
Challenges Along the Way Mushroom supplements have certainly evolved over the years. One of the most formidable obstacles for Isokauppila was raising awareness and changing the narrative surrounding mushrooms and fungi. Mycophobia, the fear of fungi, has been culturally deep-rooted in Americans for years. Not to mention, most people’s general understanding of fungi is that it will make you sick. Ironically, life-saving medical advancements like penicillin come from fungi. From a success standpoint, the industry went from people laughing at the idea of drinking mushroom coffee to worldwide acceptance of mushrooms. It also helps that platforms like Netflix saw the value in mushrooms enough to make a documentary about them, further spreading awareness of the oft-overlooked fungi. The Inspiration The need for more information and documentation on mushrooms inspired the creation of Four Sigmatic. Isokauppila recalls that no documents existed when he started experimenting with herbs and natural supplements, and customer service was terrible. Then, he realized there was no “real” mushroom health category in the U.S., only that people could boost their immune systems with mushrooms — nothing else. In that moment, Four Sigmatic emerged to fill the gap. The Future of Four Sigmatic Isokauppila attributes his success to his farm upbringing but is also grateful for the
From lion’s mane and chaga to shiitake and reishi, you’d be surprised at the traction these functional mushrooms are gaining in the wellness industry. Leading this “mushroom movement” is Four Sigmatic. A 13th-generation farmer, founder Tero Isokauppila is an innovative pioneer who has taken these natural ingredients and created a winning formula, blending old-world traditions with contemporary wellness necessities to build the No. 1 powerhouse in mushroom-based products. The Shroom Company Four Sigmatic is a wellness company specializing in products such as coffee, protein powders, and supplements fortified with mushrooms. “We started as a hard-to-understand brand ‘on shrooms,’ but now we’re doubling down on our true calling of delivering you mental performance and well-being,” Isokauppila proudly states on the company’s website. As you can imagine, a business reaching the multimillion-dollar level of success didn’t happen overnight, nor did it come easy. However, Isokauppila’s mark on the mushroom wellness industry was never a far-fetched dream. It’s safe to say it was destiny for the mushroom enthusiast.
Humble Beginnings and Running Success Growing up on a farm in Finland, Isokauppila enjoyed a childhood packed with mushrooms — he and his mother would forage for them when he was young, and he and a friend later won an innovation award for discovering a rare
experiences of living in different cities, meeting new people, focusing on what works, and refining that approach. Success can look like many things to different people, but Isokauppila is the perfect example of carving out your own path when no other path is there for you to take.
culinary mushroom while attending Tampere University. Additionally, Isokauppila credits his enhanced athletic performance as a semi-competitive runner to the Cordyceps mushrooms, which studies show improve tolerance to high-intensity exercise.
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As the year progresses, solicit feedback from your team members on market movements and practices that may impact your industry in the coming months. An employee may be aware of a new technology that can help your operation thrive or have insight into an impending trend that could negatively impact your bottom line in a
subsequent quarter. No one has a crystal ball, but your employees may offer a realistic glimpse into the future. Keep communication clear. With more businesses utilizing more remote or freelance workers than ever before, maintaining clear communications is paramount to effective leadership. While it’s essential to put instructions and other critical information in writing to ensure employees understand their roles, discussing these matters with them is equally important — not just relying on their reading a manual or viewing a prerecorded instructional Zoom video. One effective way to assess an employee’s grasp of certain processes is to have them walk you or a more experienced team member through the steps they take to complete the tasks. If they struggle to communicate the steps clearly, it’s a sign they need additional training. Additionally, it’s essential to recognize that not every employee learns the same way. Some may succeed easily through visual instruction, while others prefer learning by doing. The key is developing varied instructional options to help team members thrive in their respective environments.
HAVE A Laugh
The Bizarre History of the Bursting Teeth
People love unsolved mysteries, as shown by the numerous podcasts and shows about cold cases, and here’s another riddle for the ages: What caused the mystery of the exploding teeth? Several times during the mid- 1800s, people were beset by agonizing dental pain followed by an explosion of a tooth, according to scientific journal articles reported by the BBC. One clergyman reported a toothache so intense that he immersed his head in a cold spring to no avail. Later, “a sharp crack, like
a pistol shot, burst his tooth to fragments, giving him instant relief,” a journal reported. In another case, a woman’s molar burst so violently that it “well-nigh knocked her over.” The cause of these dental detonations isn’t clear. Some suggest, without evidence, that a mixture of metals in dental fillings may have kindled a gas explosion. Without other explanations, the mystery of the exploding teeth remains unsolved.
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Jeremy Wyatt jwyatt@harrisonlawgroup.com HarrisonLawGroup.com (410) 832-0000
40 West Chesapeake Avenue, Ste. 600 Towson, MD 21204
Inside This Edition
1.
High Stakes Hot Potato
2.
Meet the Wellness Brand Transforming the Mushroom Industry
3. The Unsolved Mystery of the Exploding Teeth 4.
Mastering Management and Mentorship
SUCCESS SECRETS FOR SMALL BUSINESSES Leadership for Lasting Growth
Step back to step up. You may carry multiple responsibilities as a small-business owner. While you still have the ultimate say in how your business operates, successful owners and managers understand and embrace the importance of identifying their weaknesses and allowing others to carry those weights. Be open to ideas that may challenge your direction and welcome suggestions from qualified individuals on strengthening and streamlining your in-house processes. No one wants to work for a tyrant, and true leaders hold themselves and others accountable if their decisions are not in the best interest of the business’s long-term goals and survival.
Running a successful small business requires a wide range of skills that would typically be spread across multiple roles at a larger company. When you’re at the helm, it can sometimes feel like you’re doing everything by yourself, all at once, which can have a devastating long-term effect on the business’s profitability and productivity — and your abilities to grow as a leader. Here are three proven strategies for effective management to help you address everything from employee turnover to feelings of burnout. Avoid the micromanagement maze. Tracking employees’ productivity is essential to your business’s health, but micromanaging can stifle your team’s ability to think creatively and work independently. Loosening the reigns now and then may help you discover a hidden talent within your organization
whose perspectives and way of working offer a fresh perspective on reaching and maintaining in-house goals. Of course, welcoming employee feedback on the effectiveness of your productivity tracking is also critical, as it allows you to identify frustrations within your team before they lead to high turnover.
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