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General Business Construction

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

When Surety Bond Incorporates the Subcontract by Reference, Is the Subcontract’s Arbitration Clause Also Incorporated? Federal...

by Pepper Hamilton LLP on

Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 111021 (D.S.C. July 18, 2017); Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 135948 (D. Kan. Aug. 24, 2017)...more

My Roof, My Rules: Arbitrators May Determine Their Own Jurisdiction When the Parties Delegate that Authority

An issue that repeatedly comes up in construction disputes is the scope of an arbitration agreement. Courts generally interpret agreements to arbitrate broadly, and, where the arbitrability of a specific claim has been at...more

Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff

Elon Musk . . . Eccentric engineer. Technology billionaire. And, now, litigation bad ass. Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly...more

BIM before the English Courts

by White & Case LLP on

In a judgment released in August 2017, the UK High Court granted an interim injunction requiring a Building Information Modelling ("BIM") coordinator to provide access to a common data environment....more

Burr Alert: Procedure for Perfecting a Mechanic’s Lien Claim in Alabama

by Burr & Forman on

Introduction A mechanic’s lien is a construction lien placed on real property which arises in favor of parties who furnish labor or material that is incorporated into the construction of a building or other improvement to...more

Builder's Risk Insurance: Resurrecting the Project After the Storm - Best Practices for Securing Coverage for Project and Claim...

by Holland & Knight LLP on

• Catastrophic storms such as Hurricane Harvey and Hurricane Irma invariably cause property damage, schedule delays and other "soft costs" when they hit during a project's construction. • Owners and contractors engaged in...more

Rebuilding After Hurricanes Harvey and Irma: Recovery Through Tax Deductions

by Bowditch & Dewey on

It is estimated that less than 20% of those affected by Hurricane Harvey, and a week later Hurricane Irma, had flood insurance. Home owner’s and renter’s insurance policies exclude damage caused by floods. Those affected...more

Federal District Court in South Dakota Compels Arbitration Despite Defendant’s Failure to First Submit the Dispute to the Project...

by Pepper Hamilton LLP on

Dlorah, Inc. v. KLE Constr., LLC, No. CIV. 16-5102-JLV, 2017 U.S. Dist. LEXIS 11043 (D.S.D. July 17, 2017) - Plaintiff, Dlorah, Inc. (“Dlorah”), filed suit against defendant, KLE Construction, LLC (“KLE”), in connection...more

Are Contractor Joint Ventures the Next Development in Development?

by Reed Smith on

The construction industry is witness to some fascinating developments, particularly around trophy properties in prime US coastal cities. Within the US –and California particularly- we’re seeing a large number of reputable,...more

Case Note on MT Højgaard A/S v E.ON Climate & Renewables UK Robin Rigg East Limited and another – [2017] UKSC 59

by King & Spalding on

On 3 August 2017, the Supreme Court of England and Wales handed down its decision in the case of MT Højgaard A/S v E.ON Climate & Renewables UK Robin Rigg East Limited and another – [2017] UKSC 59, finding in favour of the...more

Handling Assignment of Benefit ("AOB") Claims in the Wake of Hurricanes Irma and Harvey

Hurricanes Irma and Harvey have damaged large areas of Florida, Texas, and Louisiana, as well as brought heavy rain and wind to Georgia, North Carolina, and South Carolina. As insurers handle thousands of property damage...more

Pacing in Construction Scheduling Disputes

by Snell & Wilmer on

On a high level, construction delay litigation involves sorting out the impacts to the critical project path and determining which party is responsible for those impacts. One of the more difficult elements of this process is...more

Can Insurers Take Their Time? - Fourth Circuit Finds No Bad Faith for Delay in Investigating Construction Defect Claim

by Nexsen Pruet, PLLC on

Construction defect claims often include coverage disputes spiced with allegations of bad faith designed to turn up the heat on the insurer. The Fourth Circuit, in its review of one such recent North Carolina case, held while...more

California Court of Appeal: Inserting The Phrase “Ongoing Operations” In An Additional Endorsement Is Not Enough to Preclude...

In a victory for additional insureds, a California appeals court held, in Pulte Home Corp. v. American Safety Indemnity Co., Cal.Ct.App. (4th Dist.), Docket No. D070478 (filed 8/30/17), that an insurer’s denial of coverage...more

Practical Tips for Owners and Contractors Impacted By Hurricanes Harvey and Irma

by Seyfarth Shaw LLP on

Anyone watching what has happened in Houston, and what is predicted to happen in Florida, immediately thinks about the safety and well-being of those affected by Hurricanes Harvey and Irma. Once the rain stops, the water...more

Tokyo Dispute Resolution and Crisis Management Newsletter - September 2017

by King & Spalding on

Construction Disputes Update: Risk Allocation and the Availability of NonContractual Claims - The fact pattern is all too common in complex commercial construction cases. Following extensive negotiations, an owner and a...more

London Court Upholds Arbitral Award In Contractor Dispute In Face Of Challenge That Arbitral Panel Failed To Consider Coverage...

by Carlton Fields on

A court in London recently upheld an arbitral award in the face of claims that the arbitral panel failed to consider several coverage defenses one party asserted during the proceedings. The arbitration arose from a dispute...more

Sharply-Divided Washington Supreme Court Holds That Sureties, Like Insurers, Must Pay Attorney Fees to Prevailing Parties When...

by Pepper Hamilton LLP on

King Cnty. v. Vinci Constr. Grands Projets/Parsons RCI/ Frontier-Kemper, JV, No. 92744-8, 2017 Wash. LEXIS 743 (July 6, 2017) - King County contracted with three construction firms (collectively, “VPFK”) to construct a...more

Under Construction - September 2017

by Snell & Wilmer on

Welcome to the fall 2017 edition of our Under Construction newsletter. We hope your summer has left you relaxed and refreshed to make the final push to successfully finish out the remainder of the year. In this issue, we...more

Fast and (Sometimes) Furious: Acceleration and Compensability in Construction Contracts

by Faegre Baker Daniels on

In construction projects, acceleration broadly refers to the “speeding up of the pace of the work resulting in a compression of contract time available for completion of remaining work.” Acceleration is disruptive, requiring...more

Rebuilding: Construction Considerations in the Wake of Disaster

by Jackson Walker on

Southeast Texas has started to move from immediate recovery, including evacuations and draining of flood waters, to removal of water-damaged materials in homes and business and preliminary efforts to start rebuilding....more

Defence & Indemnity - August 2017: V. SURETY AND BOND ISSUES: Manitoba Housing and Renewal Corp. v. Able Eavestroughing Ltd., 2017...

by Field Law on

V. SURETY AND BOND ISSUES - A. Manitoba Court of Queen’s Bench finds CRA entitled to priority to “earned but unpaid” contract funds held by obligee (over the surety who had paid out labour and material payment bond claims...more

Dramatic change ahead for the Ontario construction industry

by DLA Piper on

With the summer months behind us, the fall season in the construction industry will include the next steps in passing Bill 142, also known as the Act to Amend the Construction Lien Act. If implemented, Bill 142 will...more

Don’t Judge an Insurance Policy by its Cover

by Davis Brown Law Firm on

Whether you are a developer, builder, design professional, subcontractor, or supplier, one of the most important aspects of risk management is ensuring both you, and any entities with whom you contract, have good insurance....more

Softening a Hurricane’s Blow: Force Majeure and Builder’s Risk

by Gray Reed & McGraw on

Hurricane Harvey caused severe destruction in Texas with its significant winds and historic rainfall. But Harvey may also prove to be a costly lesson for many project owners and contractors. As Texas begins to focus on...more

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