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Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act

The court in AECOM v. Flatiron was back at it last week with rulings on the parties’ post-trial motions. As you may recall, the case was tried to a jury earlier this year. The jury returned a verdict for AECOM in the amount...more

United States Ordered to Pay Breach of Contract Damages to Nuclear Operator in Spent Fuel Dispute

The Federal Court of Claims recently ruled in favor of the operator of the Vermont Yankee nuclear power plant in its long-running dispute with the United States over the disposal of spent nuclear fuel (NorthStar Vermont...more

Signature Lines Matter: When a Contract Amendment Is Not Really an Amendment

Construction law is largely a matter of contract law. Yes, there are federal and state statutes that deal with construction issues and, yes, construction cases sometimes involve tort claims, but more often than not,...more

Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender

In an unpublished opinion, a California appeals court has upheld a subcontractor’s mechanics lien claim despite the subcontractor’s failure to strictly follow the procedural requirements set forth in the mechanics lien...more

Court Confirms Jury Verdict for AECOM in I-70 Construction Dispute with FlatIron

We previously blogged about the hotly contested dispute between AECOM and FlatIron involving the I-70 construction project outside of Denver. After an 18-day trial, the jury returned a verdict last month for plaintiff AECOM...more

Second Circuit: No-Damages-For-Delay Clause Bars Claim

The Second Circuit Court of Appeals recently applied a no-damages-for-delay provision to affirm the dismissal of a demolition contractor’s breach of contract claims. The project involved reconstructing and raising the Bayonne...more

California Court Sends Solar Contractor’s Bond Claims to Arbitration

A California federal court ruled last week that a surety can enforce an arbitration clause in a contract to which it is not a party. The dispute involves performance and payment bond claims brought by solar contractor...more

Breach vs. Default — What’s the difference?

The words breach and default are often used interchangeably to indicate that somebody hasn’t done what they were legally required to do. According to Black’s Law Dictionary, the words do appear somewhat interchangeable. ...more

Limitation of Damages Clause in Contract Held Inapplicable to Subcontractor’s Change Order Claim

Construction contracts often include clauses that purport to limit the liability of one or both parties. This includes clauses that completely prohibit any claims for certain types of damages such as lost profits and other...more

The Risk of Fighting on Two Fronts: Court Admits Evidence of General Contractor’s Claims Against Other Parties

The court in AECOM v. Flatiron is back at it issuing additional evidentiary rulings as the parties head to trial later this month. These latest rulings highlight the risk of seeking the same damages from multiple parties,...more

The Modified Total Cost Method to Calculating Construction Damages

A Colorado federal court will allow a contractor to prove up more than $250 million in damages using the modified total cost method (see AECOM Technical Services v. Flatiron AECOM, LLC, Case No. 19-CV-2811, 2024 WL 22640 (D....more

Court Affirms Dismissal of Subcontractor’s Wrongful Termination Counterclaim and Clarifies Scope of Upcoming Trial on Damages

Back in April we examined the court’s decision in Boldt v. Black & Veatch, which dismissed a subcontractor’s counterclaim for wrongful termination on a 60-turbine wind farm project. As you may recall, the subcontractor hired...more

Court Rejects Differing Site Condition Claim for Lack of Timely Notice

A Minnesota federal court dismissed a tunnelling contractor’s differing site condition claim because notice of the condition was given eight days after the conditions were first observed whereas the contract required notice...more

Pay Attention to the Fine Print! Court Enforces Broad Release in Change Order to Deny $25M Claim

A Texas court has rejected a pipeline contractor’s $25 million claim for additional costs based on broad release language include in an executed change order (see Wood Group, USA v. Targa NGL Pipeline Company, LLC, No....more

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

Grounds for Vacating an Arbitration Award Remain Extremely Limited

The Eleventh Circuit Court of Appeals issued a decision last week upholding an arbitral award, despite the failure of the arbitrators to make certain pertinent disclosures. The case involves an international arbitration...more

Washington Court Affirms $150M Award for Victims of Seattle Crane Collapse

Earlier this month, the State of Washington Court of Appeals affirmed a $150 million jury verdict against subcontractors involved in the disassembly of a tower crane that collapsed in 2019. The collapse, which was caught on...more

Damages for Buyer’s Breach of Contract for the Sale of Real Property: Court Rejects Contractor’s Creative Damages Theory in...

Who said legal opinions have to be boring? Not Judge Terrence L. Michael of the U.S. Bankruptcy Court for the Northern District of Oklahoma, who last week issued a colorful opinion rejecting a home builder’s creative claim...more

The Basics of Contract Interpretation: A Primer for Non-Lawyers in the Construction Industry

Every first year law student in the U.S. takes a course on the Law of Contracts. It’s a rite of passage where lawyers-to-be learn all about things like consideration and legally-enforceable promises. And as lawyers, we also...more

Limitation of Liability in Extra Work Order Trumped by Subcontract

A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini...more

Court Allows Expert Testimony Regarding Measured Mile Analysis Comparing Work on Different Projects

Loss of productivity damages are commonly estimated using a “measured mile” analysis, which compares unimpacted construction work to work which has been disrupted to determine the cost impact of the disruption. Such analyses...more

Incorporation Clauses: Does the Subcontractor Really Assume All Obligations of the Prime Contractor?

Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or...more

The American Rule Stands? Appellate Court Remands for Prevailing Party to Segregate Between Recoverable and Non-Recoverable Fees

Another week, another fee-shifting case. This ones involves a 28-unit condo project in the Houston Heights neighborhood of Houston (see 2017 Yale Development, LLC v. Steadfast Funding, LLC, 2023 WL 3184028 (Tex. App. May 2,...more

The American Rule Doesn’t Stand: Contractor Uses Offer of Judgment to Recover Attorneys’ Fees in Retention Dispute

Last week we saw the Menard court reject the use of an indemnity clause to shift fees in a dispute between contracting parties. This week, a very recent decision from Nevada highlights another creative way to shift fees where...more

Collision at the Intersection of Construction and Intellectual Property Law: Are You Protecting Your Firm's Trade Secrets?

The construction industry is full of valuable business information including customer lists, pricing information, project budgets, and more. The value of such information may be lost if it becomes known to a competitor or the...more

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