Construction General Business

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Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award...more

What are the three most important risk-shifting provisions contractors and subcontractors should be concerned about?

“No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering...more

Three Ways to Avoid Bidding Pitfalls

When submitting a bid, contractors must take care to fulfill all pre-bid obligations to help the project run smoothly. What are the most important pre-bid actions to take? I was reminded of three critical points every...more

Federal Court Upholds Louisiana Ban on Project Labor Agreements

A federal court in the Eastern District of Louisiana recently ruled that Louisiana’s ban on project labor agreements on public works projects was neither unconstitutional nor preempted by the National Labor Relations Act...more

When Contract Forms Cause Unintended Consequences

Inclusion of unrevised Standard AIA contract forms in your construction agreements can cause serious unintended consequences. A case decided by the Indiana Supreme Court, Bd. of Comm’rs. Cty of Jefferson v. Teton Corp., 30...more

Defamation and the Common Interest Privilege in the Construction Industry

Construction projects often involve a complex array of contractors, subcontractors, banks, bonding agents, architects, engineers and so on. With that many parties depending on each other to complete a project, negative...more

Prepare the ground for effective contract administration: the UK’s Privy Council looks at termination risks and the employer’s...

Introductory remarks - The UK’s Privy Council recently considered the interpretation of two clauses in the FIDIC Red Book 1999, concerning the obligations of an employer to evidence financial arrangements and to notify...more

Insurance Recovery Law - August 2015 #2

Good News for Corporate Policyholders: Insurer Cannot Refuse Coverage Based on Insured's Assignment of Rights Under Policies After Loss Has Occurred - Why it matters: Reversing its holding in a 2003 case, the Supreme...more

Construction & Engineering Toolkit: The Construction Industry Tax Deduction Scheme (CIS) - August 2015

In This Issue: The Construction Industry Tax Deduction Scheme (CIS) The Construction Industry Scheme (or CIS, as it is more commonly known) is a tax deduction scheme. It concerns construction work and...more

California Court of Appeal allows construction defect class action to proceed against homebuilders

In an unpublished decision on August 19, the California Court of Appeal, Fourth District, reinstated a class action asserting construction defect claims against a nationwide homebuilder. The case is located at 2015 WL...more

[Webinar] How Will Browning-Ferris Change the Test for Joint-Employer Status for Union and Non-Union Employers? - August 31st,...

The NLRB is expected to release its long-anticipated decision in Browning-Ferris Industries of California, Inc. shortly, possibly today. This decision will likely mark a radical departure from the currently accepted standard...more

Saul Ewing Top Ten Construction Clauses: Substantial Completion

Substantial completion is described in AIA Document A201™-2007 as “the stage in the progress of the Work when the Work or designated portion thereof is substantially complete in accordance with the Contract Documents so that...more

Letters of the Law: 'Q' is for Quality

Quality can be difficult to describe and equally difficult to deliver. To what quality does a contractor have to deliver construction works by law? How is that measured? As with many aspects of construction and...more

11th Circuit to decide whether construction defect notice under Florida repair statute is a “suit”

Recently, the United States District Court for the Southern District of Florida addressed what constitutes a “suit” within the context of Florida’s right-to-repair procedure for construction defect disputes. In Altman...more

Summary of California Appellate Decisions -August 2015

Insurance; Duty To Defend; Insurance Coverage; Intentional Acts; Sexual Misconduct - Gonzalez v. Fire Insurance Exchange (2015) 234 Cal.App.4th 1220, 184 Cal.Rptr.3d 394 (WL 960927) - Facts: This is an...more

Four Common Construction Contracts

Like Baskin Robins, construction contracts come in a variety of different flavors although, thankfully, significantly fewer than 31 flavors. Here are four of the most common types of construction contracts between project...more

American Arbitration Association Revises Construction Industry Rules and Mediation Procedures

The American Arbitration Association (AAA) recently revised its Construction Industry Rules and Mediation Procedures (Rules). The revised Rules, which took effect on July 1, 2015, are intended to provide a more efficient and...more

State Agencies Cannot Use State Budgetary Uncertainties to Escape Mitigation Obligations under CEQA

The California Supreme court determined the California State University ("CSU") could not rely solely on earmarked appropriations from the State Legislature for payment of "fair share" mitigation fees the CSU determined...more

Ninth Circuit Finds Defects in the Construction of a “Known-Loss” Exclusion

A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage...more

JAMS Global Construction Solutions Newsletter, Summer 2015

Construction Lawyering in the U.K. and U.S.: Contrasts and Similarities - Introduction - There are important differences between the American and British styles of lawyering, but there is also much common...more

Beware Of The One-Two Punch Expected In The Fair Housing Law Arena

The combination of a recent unfavorable Supreme Court decision along with dramatically increased federal funding for fair housing enforcement could spell bad news. Businesses that operate in the housing industry and those...more

Eastern District of Texas Rules that Insurer’s Delayed Acceptance of the Duty to Defend Constitutes a Breach of that Duty

In Yowell v. Seneca Specialty Ins. Co., 2015 WL 4575450, 2015 U.S. Dist. LEXIS 98719 (E.D.Tex., Jul. 28, 2015), the Eastern District of Texas ruled that an insurer’s unexplained, 140-day delay in agreeing to defend its...more

Update on Labor Depreciation Class Action Litigation: Kansas Federal Court Rules for Insurer

As an update to my March 29, 2015 blog post on the status of class actions on the labor depreciation issue, a Kansas federal court recently granted summary judgment in favor of an insurer. In Graves v. American Family...more

Letters of the Law: 'P' is for Provisional Sums and Prime Costs

Provisional sums and prime costs are not terms of art. Provisional sums and prime costs are not concepts codified in the law. There is danger that one party's understanding of how to apply them may differ from the other. The...more

Mexico’s Energy Industry: Updated Bidding Guidelines and Contract Terms for Ronda Uno, Second Tender

On August 4, 2015, the Comisión Nacional de Hidrocarburos (the CNH) released revised versions of the Bidding Guidelines (the Guidelines) and the Model Production Sharing Contract (the PSC) for the Second Tender published on...more

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