General Business Construction

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New Amendment to the Interstate Land Sales Full Disclosure Act (ILSA) could be Good News for Condominium Developers

On September 26, 2014, President Obama signed into law House Resolution 2600 that adds the sales of condominium units to the list of “partial” exemptions under the Interstate Land Sales Full Disclosure Act (ILSA). With the...more

Completed Condominium Units to be Exempted from ILSA Registration Requirements

A bill exempting completed residential condominium units from the burdensome registration provisions of the Interstate Land Sales Act (“ILSA”) was passed by the U.S. Senate on September 18, 2014, after earlier passage by the...more

Construction Case Law Update - September #2 2014

FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

Connecticut Court Again Holds That Certificates of Insurance Do Not Confer Rights

A Connecticut Superior Court has further clarified the construction industry whether a certificate of insurance naming a party as an additional insured confers any rights on that party. In Hobbs, Inc. v. Charter Oak Fire...more

Nebraska Appellate Court Gets Down to Earth to Hold That Faulty Workmanship Standing Alone Is Not An “Occurrence”

The insurance and construction industries have disagreed about coverage claims involving faulty workmanship for many years. Contractors believe their CGL insurance policies should always cover property damage caused by...more

Policy Observer - September 2014

All Sums or Pro Rata: Did You Get the Coverage You Bought? In recent decades, liabilities stemming from long-term bodily injury or property damage—as from exposure to asbestos or contamination of the environment—have...more

Competition Commission of India Conducts First-Ever Raid

Earlier this week, India’s competition regulator-the Competition Commission of India (“CCI”)-raided two offices of JCB India Limited (“JCB”), a UK-based manufacturer of construction equipment. This raid marks the first time...more

Nevada Court Holds NRS Chapter 40 Does Not Require a Subcontractor to Provide Pre-Litigation Notice to a Supplier

Under Nevada Revised Statutes Annotated (NRS) Chapter 40, a general contractor is required to provide pre-litigation notice (followed by an opportunity to repair) to a subcontractor or supplier the general contractor believes...more

Construction Case Law Update - September 2014

FLORIDA STATE CASES - Forum selection clause in construction contract will not be enforced where third party defendant would be forced to testify in two venues. Forum selection clauses in contracts are generally...more

Connecticut Supreme Court Construes “Active Interference” Exception to “No-Damage-for-Delay” Clause

C&H Electric, Inc. v. Town of Bethel, 312 Conn. 843, 2014 Conn. LEXIS 263 (Aug. 5, 2014) - This dispute arose out of a project to renovate and build an addition at a high school in the Town of Bethel, Connecticut. The...more

The Legal and Financial Consequences of Moving to a More Contractor Friendly No-Damage-For-Delay Cause

According to the New York City Building Congress, Manhattan is poised to add roughly nine million square feet of new office space to its inventory between 2013 and 2015. If realized, this would be the highest volume of new...more

Mechanics Lien Subordination: Illinois Further Limits Construction Lenders’ Ability To Ensure Priority Against Mechanics Liens

On July 16, 2014, Illinois enacted Public Act 98-764 (Senate Bill 3023) (“SB 3023”), which amends the Illinois Mechanics Lien Act (770 ILCS 60/ et seq.) (the “Act”) to prohibit subordination of mechanics liens on Illinois...more

Texas Supreme Court Recognizes Exceptions to Enforcement of No-Damages-for-Delay Clauses

On August 29, 2014, in Zachry Construction Corp. v. Port of Houston Authority of Harris County, No. 12-0772, 2014 WL 4472616 (Tex. 2014), the Texas Supreme Court found that no-damages-for-delay clauses that purport to waive...more

Construction Alert: "Texas Supreme Court Sinks Port Authority's Ship - Port Authority's No Damages for Delay Clause Held...

The Texas Supreme Court recently issued an important decision regarding “no damages for delay” clauses in construction contracts. In Zachry Construction v. Port of Houston Authority, the Court found that the owner, the Port...more

Illinois Court Holds Insurer Improperly Delayed Declaratory Judgment Action

In FCCI Ins. Co. v. Westfield Ins. Co., 2014 Ill. App. Unpub. LEXIS 1421 (Ill. App. June 27, 2014), the Appellate Court of Illinois had occasion to consider whether an insurer was estopped from asserting policy defenses to...more

Calling a Letter a “Reservation of Rights” Does Not Necessarily Make It So

Many insurers are in the habit of sending perfunctory “reservation of rights” letters to their insureds throughout the lifetime of a claim. The reason they do so is not a very well-guarded secret in the insurance industry. An...more

Construction Contract Payment Terms: Timing is Everything

In 2011 you will probably recall receiving a plethora of information about the amendments to the Construction Act (the “Act”) particularly the resulting “new” payment regime. There was a flurry of activity leading up to the...more

U.S. District Court in Kentucky Holds that Contractor Which Proposed Design Solution During Construction Might Be Liable for...

American Towers LLC v. BPI, Inc., 2014 U.S. Dist. LEXIS 106724 (E.D. Ky. Aug. 4, 2014) - American Towers LLC (“American Towers”), which operates wireless and broadcast communications towers, undertook a project to...more

NSW Supreme Court Confirms Definition of a 'Construction Contract' Under the Building and Construction Industry Security of...

The recent NSW Supreme Court case of Seabreeze Manly v Toposu, (Seabreeze Case), is a useful reminder to the building and construction industry as to what 'arrangements' will give rise to a 'construction contract' under the...more

Obrascon Huarte Lain SA v Her Majesty's Attorney General for Gibraltar: A rare look at the FIDIC form of contract

Introduction - Mr Justice Akenhead's judgment in the case of Obrascon Huarte Lain SA v Her Majesty's Attorney General for Gibraltar[2014] EWHC 1028 (TCC) provides judicial guidance on the interpretation of certain key...more

Zachry v. Port of Houston Authority: Texas Supreme Court rules for contractor despite no-damages-for-delay clause

The Texas Supreme Court has issued a decision that could have a huge impact on the construction industry in Texas involving several high-profile issues the industry has passionately debated for years. In Zachry...more

Arizona Contractors Confront Cardinal Change

The Cardinal Change Doctrine - The “cardinal change doctrine” is a legal theory pursuant to which a contractor who is presented excessive, cumulative or otherwise material contract change orders has the right to...more

Drafting Contracts to Minimize or Avoid Claims

Many claims that arise in design and construction may be mitigated or avoided as a result of prudent contract drafting at the outset of the project. This article provides practical tips for drafting contracts to minimize or...more

August 2014 Monthly Independent Contractor Compliance and Misclassification Update

This month’s headline development are the seismic decisions, issued on August 27, 2014 by the U.S. Court of Appeals for the Ninth Circuit, concluding as a matter of law that FedEx Ground had misclassified over 2,300 drivers...more

New Massachusetts Law Imposes Limits and Controls on Retainage under Construction Contracts

On August 9, 2014, Governor Patrick signed SB2271 into law. This law will have important impacts on both private developers and contractors. The Act limits the amount of retainage withheld under construction contracts and...more

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