What is a construction trust?
A construction trust is a type of trust that is set up to hold onto the funds related to a construction project. A construction trust is an important part of construction law in West Virginia, as it serves as a means of protection for those involved in construction projects. The trust is commonly used to provide protection for the interests of all parties involved, including the general contractor, owners, construction professionals, subcontractors, suppliers, and other individuals involved in the project. The trust serves as a way for all funds related to the construction project to be held until completion. This provides an assurance that all parties involved will be paid for their services. Additionally, any funds left over at the completion of the project are distributed according to the terms outlined in the trust agreement. In addition to providing assurance that all parties are properly compensated, a construction trust also provides protection from liens. Parties that are owed money or have provided services for the project can file a lien against the trust, which prevents the parties from pursuing legal action against other parties involved in the project. The trust can also protect against disputes between the parties involved in the construction project. This is because all of the funds related to the project are held in the trust until completion, and then distributed according to the terms of the trust agreement. This ensures that there is no dispute related to who should receive the funds or how they should be distributed. Overall, a construction trust is an important aspect of construction law in West Virginia. It provides protection and assurance to all parties involved, as well as offering a way to protect against disputes and liens.
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