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General Business Construction

Read need-to-know updates, commentary, and analysis on General Business issues written by leading professionals.

Compensation events under NEC3: Prospective vs Retrospective Assessment

by White & Case LLP on

The NEC3 suite of contracts contemplates compensation events being assessed at around the time they occur or are instructed, based on the forecasted impact of the event.But if the actual cost or delay arising from an event is...more

Construction One-Minute Read: Allowance or Contingency?

While both relatively simple concepts, allowances and contingencies are often confused with one another. Conflating the two can lead to pitfalls. ...more

Construction Liens Filed by Suppliers in New Jersey After Contractor’s Filing of Bankruptcy Petition Are Barred by the Automatic...

by Pepper Hamilton LLP on

In re: Linear Electric Co., Inc., No. 16-1477, 2017 U.S. App. Lexis 5527 (3d Cir., March 30, 2017) - This case concerns whether suppliers, Cooper Electrical Supply Co. and Samson Electrical Supply Co. (“Suppliers”),...more

Factoring and leading with your chin

by Dentons on

Factoring agreements are very popular with subcontractors and suppliers in the construction industry, assisting cash-flow by providing a line of credit against accounts receivable. However, like any financial product,...more

Descoping of works: what is the employer entitled to do?

by White & Case LLP on

Financial constraints mean that employers are often looking to descope works from major projects. But how feasible is this? A recent case highlights the potential implications for employers who attempt to descope works...more

Federal Court in Alaska Holds Insurer Liable Under E&O Policy to Indemnify and Defend Construction Manager for Claims by...

by Pepper Hamilton LLP on

KICC –Alcan Gen. v. Crum & Forster Specialty Ins. Co., 2017 U.S. Dist. LEXIS 37560 (March 16, 2017) - A Contractor/Construction Manager, KICC-Alcan General (“KICC”), entered into a subcontract with an MEP subcontractor,...more

Tokyo Dispute Resolution & Crisis Management Newsletter – April 2017

by King & Spalding on

Building a Favorable Project Record During Construction Disputes - The value and importance of the written record in a dispute arising from a major construction project cannot be overstated. Even when project personnel are...more

The Indiana Supreme Court Finds a Non-Delegable Duty of Worksite Safety Created in Form Design-Build Contracts Between the Owner...

by Reminger Co., LPA on

In Indiana, courts have historically found it is acceptable practice for a general contractor to delegate the duty of ensuring the safety of a subcontractor’s employees to the subcontractor, so long as it is clearly set forth...more

Contractor May Receive Indemnity Despite Alleged Active Negligence or Willful Misconduct

by Low, Ball & Lynch on

Oltmans Construction Co. v. Bayside Interiors, Inc. - Court of Appeal, First Appellate District, 10 Cal.App.5th 355 (March 30, 2017) - Civil Code § 2782.05 renders an indemnity provision in a contract void and...more

AIA Releases 2017 Construction and Design Agreements

by Dickinson Wright on

At the end of last month, the American Institute of Architects (“AIA”) released several revised documents including the primary agreements between the owner and contractor and the owner and architect. Many of the revisions...more

Looking for an Excuse? Here Are Four Excusable Delays for Construction Projects

by Faegre Baker Daniels on

No commercial construction project is immune to delays. Some delays to the critical path of a project may be outside the control of the parties. If this is the case, the delay may be considered “excusable,” meaning the...more

Negotiating Construction Agreements with Japanese Contractors for Domestic Projects

A foreign owner contracting with a Japanese construction company to build facilities in Japan, whether a hotel, a manufacturing facility, a process plant or otherwise, faces a number of challenges....more

Construction Alert: "When Is It Cool Not to Pay? Fridge Dispute at Texas Supreme Court Addresses Prior Material Breach Doctrine"

by Porter Hedges LLP on

The Texas Supreme Court recently issued an opinion that could impact the next construction project where multiple parties complain about who breached (and who breached first) and whether the parties must continue performing...more

Colorado Appellate Court Holds that Commercial Entity that Owns a Senior Living Facility Is a “Residential Property Owner” Within...

by Pepper Hamilton LLP on

Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co., 2017 Colo. App. Lexis 261 (March 9, 2017) - R.G. Brinkmann Company, as general contractor, was retained by Sunrise Development, Inc., a major national developer,...more

Fifth Circuit Holds That Spearin-like Provision of Louisiana Civil Code Bars Negligent Failure to Warn Claim

by Pepper Hamilton LLP on

LaShip, LLC v. Hayward Baker, Inc., 2017 U.S. App. LEXIS 3694 (5th Cir. Mar. 1, 2017) - Beginning in 2007, LaShip, LLC (“LaShip”) undertook the construction of a large shipbuilding facility in Houma, Louisiana (the...more

Weather Delays – When Are They Compensable

Provisions relating to weather delays in a construction contract are nothing new to most contractors. These provisions usually provide that delays resulting from inclement weather will entitle the contractor or subcontractor...more

NEC4 suite of standard form contracts to be released in June

by White & Case LLP on

On 22 June 2017, the NEC4 suite of standard form contracts will be officially launched at the NEC Users' Group's Annual Seminar. This new suite will replace the popular NEC3 suite, which was first published back in 2005....more

Employers Beware: Indiana Supreme Court Expands the Scope of the “Duty of Care” Owed to a Subcontractor’s Employees

by Fisher Phillips on

In light of a recent decision from the Indiana Supreme Court, Indiana employers—and construction companies in particular—should review their contracts and subcontracts to determine if they have unwittingly assumed a duty of...more

Negligent Design Claims – Is it in the Contract?

Developers and project managers routinely rely on multiple professionals at the start-up of a particular project. Land is appraised, surveyed and inspected. Plans are engineered, drafted, and redrafted. Often, a design error...more

When Is the Contractor’s Termination for Default Proper? When It Does Bad Things

by Burr & Forman on

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, Haven, who just “looks like” she’s up to no good. In the world of...more

Agreements Are Not Enough: Reasonable Efforts Needed

Many employers, including construction contractors and material suppliers, attempt to protect their business by having their employees sign non-competition, non-solicitation, non-disclosure, and/or confidentiality agreements....more

Eleventh Circuit Affirms Decision Under Florida Law Barring Contractor’s Performance Bond Claim for Failure to Comply With Notice...

by Pepper Hamilton LLP on

Int’l Fidelity Ins. Co. v. Americaribe-Moriarty JV, 2017 U.S. App. LEXIS 3628 (11th Cir. Feb. 28, 2017) - Americaribe-Moriarty Joint Venture (“Americaribe”) entered into a subcontract with Certified Pool Mechanics I,...more

The new FIDIC White Book for Consultancy Services

by White & Case LLP on

FIDIC has recently published the 5th Edition of its Client/Consultant Model Services Agreement (the White Book). The White Book is an important part of the FIDIC suite and is one of the most widely used forms of professional...more

What Is Inefficient Risk Transfer? The Use of Indemnification in Construction Contracts

by Burr & Forman on

As a father of seven children, I am always being asked to determine the “responsible party” when something breaks, gets lost, or is simply missing. In parenting, there is no written contract between the adult and to child to...more

Insurance Coverage for Property Damage Caused by Defective Workmanship

by Pepper Hamilton LLP on

One of the principal points of contention between insurers and insureds is whether defective construction work is, or can be, an occurrence, thereby triggering coverage. Originally published in ConsensusDocs (Vol. 3,...more

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