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Contract Void Ab Initio: Key Insights into the KBR vs. Corps of Engineers Affirmative Defense

In a recent Board decision dated December 13, 2023, the United States Army Corps of Engineers sought to amend its answer in the case of APPEALS OF – KELLOGG BROWN & ROOT SERVICES, INC., under Contract No. W912GB-13-C-0011....more

Home Builders and Developers Beware: SC Supreme Court Beats Up Hybrid Arbitration Clauses Mercilessly

If you are a homebuilder, residential housing developer, construction industry insurer, or any one of the many participants in the industry providing affordable and decent housing for the citizens of South Carolina, you are...more

Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of...more

When is a Contractor’s Termination for Default Proper? When it Does Bad Things!

Sometimes you “do” bad things.  Sometimes you “look like” you do bad things.  Just look at the difference between Bad-boy Jack and my youngest daughter, who just “looks like” she’s up to no good.  In the world of construction...more

Feeling Rejected? MA Court Construes for the First Time the Provisions of the Prompt Pay Act

In life, rejection is often hard to swallow.  In construction, that rejection can sometimes amount to millions of dollars.  A Massachusetts court recently held that an owner’s rejection of the contractor’s payment...more

You Can’t Treat Construction Claims Like Your Grandkids

I have seven children, and two of them have flown the coop.  I also have two grandchildren who are ripe for spoiling. You see, grandchildren are a different type of kid, which means I get to treat them different than the...more

Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. If you have construction projects in Virginia, then read on. If you want know whether your state prohibits...more

Broad Form Lien Waivers No Longer Part of the Game in North Carolina

North Carolina Avenue is one of the hottest properties in Monopoly, says most of my kids.  And if you are a contractor or subcontractor in North Carolina, the law makers recently afforded you some additional protections to...more

Pre-Bid Documents and Estimates Can’t Be Hidden Behind the Curtain in Disputed Delay Claims

In WDF, Inc. v. City of New York,  No. 652478 (N.Y. Sup.) (Mar. 12, 2021), the contractor filed suit to recover damages from the City on numerous combined waste water treatment projects.  The contractor claimed that the City...more

Not Just An Old Wives’ Tale: Negotiating “Paid In Full” Check Binds Contractor

Long before I was an attorney, I heard this tale that if you endorsed a check that had the words “PAID IN FULL” written on the check, then you were accepting the check as full payment of whatever was owed. But I have never...more

Court Recognizes Day-to-Day Changes Are Compensable Despite Contractual Waivers

It happens all the time! The owner-contractor agreement contains a “no damages for delay” clause; a clause requiring that all changes be in writing before work is performed; and a clause requiring partial lien waivers and...more

No Longer in the Dark: A Primer on the Distinction between Delay and Disruption Damages in a Construction Dispute

If you are left in the dark about something, you don’t have the information you should have to make an informed decision. Delay claims on a construction can be confusing, especially when you think about the delay to the work...more

Double Take: Court Finds That Contractor Waived Owner’s Past (But Not Future) Payment Obligation Failures

In Wickersham Construction and Engineering, Inc. v. The Town of Sudlersville, Maryland (Sept. 22, 2020), the United States District Court for the District of Maryland held that a construction contractor had waived certain...more

Email Sent After Final Payment Held Insufficient to Preserve Timeliness of Claim Against Government

They say that hindsight is 20/20. Who is they, anyway? The old proverb means that it is easy to understand something after it has already happened. In the world of construction contracts, preservation of claims made in...more

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

It goes without saying that in the world of construction contracts … words matter! There is language in the Goes decision that a cost-plus contract imposes upon the contractor an implied duty to incur reasonable and proper...more

9 Best Practice Tips for a Schedule Analysis of Construction Delays

It almost goes without saying that if you have to pursue or defend a delay claim, you are going to need some evidence (preferably by an expert) to establish or to challenge entitlement to the damages sought. And we all know...more

Contractor Learns You Need an Expert to Join “Battle of the Experts”

It kind of goes without saying, but you should probably bring your expert to a dispute if there is going to be a battle of the experts. One contractor recently learned this lesson to the tune of $65,000....more

Gobble Gobble First and Then You Can Put Up the Christmas Tree. Well, Kinda.

In VVM Builders, LLC v. Atkins Construction Group, LLC, No. CV195021541S (Oct. 31, 2019), the Superior Court of Connecticut squarely addressed this precise issue in a case involving a change order dispute between a contractor...more

The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

As you may be aware, one of the greatest risks on a construction project involves the payment process. Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a...more

Design-Build Contractor Held to the Same Standard On Differing Site Conditions Clause

A court recently held that the type of contract delivery method did not change the applicability of the differing site conditions clause. Appeal of John C. Grimberg Co., Inc., ASBCA No. 58791 (Oct. 25, 2018) involved the...more

Arbitrator: Produce Those Construction Documents . . . And Me: You Have No Authority!

Construction disputes often involve voluminous amounts of discovery, including documents in the hand of third parties.  And if the case is subject to arbitration, it is likely that there will be a dispute about whether the...more

Contracting Offficer’s Belief That Contractor Could Not Meet Schedule Requirements Insufficient to Support Default Termination

There is objection evidence.  There is subjective evidence.  And sometimes, it is a combination of both  A case cannot go much worse when a court’s opinion starts with the following: “This case concerns a contract in which a...more

Payment of Retainage with “conditions attached” Deemed Non-Payment

Given the amount of leftover Halloween candy in our house, you bet that I can make some deals with my kiddos: “If you do this, I will give you some candy” … or … “If you don’t stop doing this … I won’t give you any candy.”...more

Court Holds That Temporary Labor Company Not a “Subcontractor” For Lien Purposes

Do you think that there is a difference between “furnishing” labor and “performing” labor? (Is there a difference between Godiva chocolate and Palmer’s?) Well, the Court of Civil Appeals of Oklahoma recently held that...more

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