[EMMANUEL THUTO OAGENG

CONSTRUCTION LAW ASSIGNMENT

Question 1

(a)

A lien is a legal claim or a right against a property. Liens provide security, allowing a person or
organization to take property or take other legal action to satisfy debts and obligations. Liens are
often part of the public record, informing potential creditors and others about existing debts.

Here's an example: When a client buy a building, he promise to repay his lender. His lender now
wants more than his signature; as they have very little leverage if he stops making payments. But
by filing specific documents with local government offices, the lender becomes a lienholder (the
person or organization that files the lien) on your property. The debt is now secured, and the
lender has a better chance of getting repaid.

(b)Purpose of construction liens

1. Liens may give contractors the legal right to take the clients property and sell it if he
doesn’t repay his debt.
2. As public records, liens tell other potential contractors that there are existing claims to the
property. New lenders won’t be first in line when it comes time to get repaid. As a result,
it will be difficult or impossible to sell the property until the lien is cleared up. For
example, liens typically prevent you from selling your property unless you pay off
outstanding debts in the process.

(c)

A lien waiver is a written agreement between a payer and a counterparty where said counterparty
gives up their right to place a lien on the payer's property or goods.

Lien waivers are often used in the construction industry throughout phases of projects.

A lien waiver is similar to a receipt and can prevent a mechanic's lien from being filed

What is Internal Recruitment?

Internal recruitment is the process of filling up open positions within the organization from its
current workforce. Instead of releasing the positions into the job market, the HR department
chooses to advertise the vacancy internally for the current employees to apply

Advantages of Internal Recruitment

  Reduced Time to Hire

With internal recruiting, you save all the time you otherwise spend on identifying,
attracting and engaging candidates. You have instant access to your candidates and their
track records, they are already a culture fit and also pre-screened for the position, and the
department is already acquainted with the candidate!

 Shortens the Induction Process

Every new hire takes some time to get acquainted with new people and processes but an
internal hire is already familiar with the company’s policies, practices and people. All
they need to know about is their new role and its responsibilities.

 Cost-effective

Internal recruitment is cost-effective because unlike external recruitment it does not

involve job postings, resume screening, filtering relevant resumes, communicating with
shortlisted candidates, and conducting interviews. You simply need to narrow down on
the most suitable candidates and hire the right fit to fill the open role.

 Improved Employee Morale

Internal promotions send out a message that that you value your staff and are willing to
invest in their career growth. Giving your current employees more opportunities for
career advancement by changing their roles will work to boost their morale and motive
them to do better in their new roles.

Disadvantages of Internal Recruitment

 May Stagnate the Company‘s Culture

While internal recruitment does save a lot of your time, energy and resources, it is not
without drawbacks. It can rust the company’s culture because when employees get too
comfortable with the processes and procedures, they are unable to spot operational
inefficiencies and struggle to innovate.

 Increased Training Costs

Just because a current employee seems like a perfect fit for a new role and has all the
desired qualities, does not mean he/she won’t need training. With external recruitment,
you get a candidate with all the required skills, experience and attributes that allow him to
be productive immediately. But, an in-house recruit is not likely to take on all the
responsibilities and perform a role efficiently from day 1.

 Limited Choices
 Your organization may be having several qualified employees for certain positions, but
they may not be a perfect match for an open position. For instance, if a recently created
role is fairly innovative and new for your business, then your current employees may not
be able to fulfil the responsibilities of this role. For this role, you would need someone
with new ideas and skills.

 May Lead to Workplace Hostility

Employees who have been considered for a promotion for a certain role could feel
resentful if an external candidate or their own colleague is hired for that role eventually.
Also, managers are reluctant to give away their star performers as losing them would
impact the entire team’s performance. In fact, certain managers would also go the extent
of hindering the process of transfer or promotion and this can lead to hostility at work.

What is External Recruitment?

External recruitment is the process of filling open roles of the company with applicants, outside
the current employee pool.

Advantages of External Recruitment

 Increased Conversion Rate

External recruitment attracts a variety of candidates with different capabilities and skill
sets, thereby increasing your chances of landing maximum suitable candidates.

 Better Quality Candidates

A creative external recruitment campaign enables the recruiter to tap top choice
candidates. When automated with an applicant tracking system, the external recruitment
process expands your reach, attracts the right candidates, keeps them engaged and makes
it much easier to bring them on-board.

 Attracts New Skills and Inputs

External recruitment greatly increases the possibility of identifying and attracting fresh
talent. This talent comes on-board with new skills and business ideas that have the ability
to take your business to the next level.

 Brings New Business Insights and Ideas to the Table

External recruitment attracts a variety of applications from candidates with varying work
experiences. This gives you easy access to candidates who’ve gained knowledge from
working for different companies. Hiring these candidates would mean gaining insights
 into new and innovative business practices and knowing other aspects of your
competitor’s businesses.

Disadvantages of External Recruitment

 Higher Risk

The external recruitment process can attract candidates who are not relevant or worthy of
the open position. Since maximum candidates are total strangers to the recruiter, the risk
of brining a misfit on-board cannot be ruled out completely.

 Greater Cost

The external recruitment process involves posting jobs on different platforms, coming up
with compelling JDs, communicating with candidates, screening resumes, conducting
interviews and coming up with an irresistible offer. All of these aspects of the recruitment
process are time-consuming, tedious, complicated, and costly.

 Time Consuming

The biggest downside of an external recruitment drive is the time taken to fill open
positions. Recruiters receive hundreds of resumes for every open position and screening
them takes up a lot of time. However, using an applicant tracking system can take this
entire screening time from hours to minutes and narrow down your talent tool to include
only qualified candidates in a jiffy.

 Possibility of Maladjustment

It is possible that your new hires may not be able to adapt to their new working
environment and break the ice with their new team members. When recruiters fail to hire
a culture fit, new hires often leave the job and need to be replaced, requiring recruiters to
hunt for new candidates.