Unless the business that provided the services is incorporated--------if incorporated, then payor need issue NO 1099.

New construction has no bearing on this------that is usually a state's sales tax issue.........so, if you hire a contractor to build a house, and he is not incorporated, then you owe him a 1099-MISC for his services......

and you need to issue one for an attorney-------EVEN IF THEY are incorporated.

If business providing service is a partnership..........then yes, provide 1099.

There is no penalty for providing a 1099 where none was needed.........there is a big penalty for providing none where one was needed.........

so.............which is better.........to issue in error, or not to issue in error..........