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3 pages/≈825 words
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Business & Marketing
Other (Not Listed)
English (U.S.)
MS Word
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Treetop Design and Construction LLC (Other (Not Listed) Sample)


The sample is a memorandum to a group of investors about a proposed design and construction company called Treetop Design and Construction LLC. It required students to provide an overview of the business and address the contract issues and the contracts needed, employment and employee safety issues, environmental issues, intellectual property issues, consumer law and warranty issues, real estate issues, digital privacy issues, financing means, and insurance needed to cover liabilities. The memorandum also addressed the business’ succession planning as well as ethical and governance considerations.


Date: May 10, 2019
To: Group of Investors
From: John Manning
Subject: Treetop Design and Construction LLC
Overview of the Business
The proposed business is in the home design and construction industry. The business will be a private limited liability company called Treetop Design and Construction LLC, and will be located in Milford. The company will specialize in designing and building new homes, renovations, landscaping, and will offer home construction advisory services. The rationale for Treetop Design and Construction LLC is the increased demand for home construction services in the East side of Cincinnati, Mason, Wetherington, Madeira, Indian Hill, West Chester, and Liberty Township. The company will be able to generate sales and profits given the high demand of home building services in these areas. The company will start with six employees excluding the directors.
Contract Issues and Contracts Needed
Due to the nature of its operations, the business will face several construction issues covering retainage, payment, waivers of negligence, retainage, risk-shifting, and anti-indemnity provisions. The company will enter into different contracts with individual owners or other contractors in its operations. The company will hire an attorney on a need-basis and set a provision for legal liabilities to cushion against losses from contract matters. For larger contracts, the company will include an exculpatory or limitation of damages clause with its clients to limit the amount of liquidated damages the business can pay a client if an issue arises due to the fault of either party.
Employment and Safety Issues
The company will have six permanent employees at the beginning and this number is expected to increase as the company grows. The company will comply with the relevant state and federal labor laws including but not limited to those relating to fair pay, equity, diversity, and employee relations, leaves of absence and time-off, and healthcare continuation coverage obligations. Health and safety in the workplace will also be prioritized under the Occupational Safety and Health Act, Ohio Public Employment Risk Reduction Program, and the requirements of the Labor and Worker Safety’s Bureau of Occupational Safety and Health of Ohio’s Department of Commerce to minimize the occurrence of safety issues.
Environmental Issues
Treetop Design and Construction LLC being a construction company is expected to encounter environmental issues in the performance of its activities. The environmental issues that may arise relate to materials and waste management including disposal of non-hazardous solid waste, construction and demolition debris, and infectious waste. To cushion against environmental legal issues, the company will enter into construction contracts that stipulate the owner shall be responsible for management of waste for homes that require to be refurbished. However, where the company offers home building services, it will manage the waste in accordance with the federal Environmental Protection Act and applicable environmental state laws.
Consumer Law and Warranty Issues
The company does not offer any products or goods. Consumer law and warranty issues are, therefore, not expected to arise. The materials used in constructing and renovating houses will be solely purchased by the owner with the exception of damage to construction materials already purchased but damaged during operations, where the company will incur the material re-purchase expenses.
Intellectual Property Issues
Intellectual property matters will also not arise. The company is also in the home design business, but it will not protect its designs under the intellectual property laws. This is because the designs may be replicated by other companies in the industry. However, it will enforce non-compete agreements with its employees including the directors. This is to prevent employees going into direct competition with the company from replicating Treetop LLC’s designs, especially where significant investments were made in creating those designs.
Real Estate Issues
Treetop Designs and Construction LLC will lease office space in Milford where its operations will be based. It will sign a lease agreement that will be legally binding and will comply with the legal requirements of the agreement, particularly those relating to rental payments and property maintenance. This will ensure that leasing and real estate issues do not arise.
Digital Privacy Issues
Data privacy will be a priority for the company. Security breaches may expose corporate and client data to third parties and is also costly to the organization. As such, employee, company, and client data will be protected in line with the Ohio Data Protection Act. The Act provides for breach litigation to entities that meet the cybersecurity standards. Compliance with the Act will cushion the company against liabilities in the event of breach of client data by any party, external or internal.
Insurance Needed
Insurance is one o

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