Opinion ID: 1207008
Heading Depth: 3
Heading Rank: 1

Heading: Is Gross A Contractor Under AS 08.18.171(2)?

Text: AS 08.18.171(2) states that a contractor is a person who undertakes or offers to perform, or claims to have the capacity... to construct a fixed structure. [4] In Industrial Power & Lighting Corp. v. Western Modular Corp., 623 P.2d 291 (Alaska 1981), we stated that the word `undertakes' as it is used in AS 08.18.171(2) is not limited to a contractual undertaking, but must be understood in the more general sense of setting about, engaging in, or entering upon an activity described in the statute. Id. at 296 (footnotes omitted). This court held that Industrial Power fell within the definition of contractor under AS 08.18.171(2). Industrial Power was undertaking construction since the contract to purchase the prefabricated units was certainly the beginning of Industrial Power's undertaking to accomplish the project it had planned. Id. In the present case, Gross' purchase of the lots and his agreement to start construction on those lots by July 1, 1982 must be viewed as undertaking construction under the Industrial Power definition. By agreeing to purchase lots and to begin building homes, Gross may be deemed a contractor under AS 08.18.171(2). This view is bolstered by the fact that Gross represented himself as a contractor, and Bayshore relied on that representation. Additionally, Gross admitted in a stipulation between the parties that his capacity as a construction contractor was material to the agreement entered into between the parties. (Emphasis added). Thus, Gross claim[ed] to have the capacity to construct a fixed structure within the meaning of AS 08.18.171(2), and should have been registered as a contractor when he contracted with Bayshore. Gross argues that the contract was for the purchase of lots, and not the construction of homes. However, the trial court found that there was a contractual requirement that homes be built upon the Bayshore lots, a requirement which related to the profitable overall development of [Bayshore's] subdivision as well as the protection of [Bayshore's] subordinated interest. We agree with the trial court and Bayshore that Gross contractually committed himself to undertake construction.