News & Analysis as of

Breach of Contract Construction Contracts

“Quid pro quo”: preventing an unreciprocated interim payment (30 years later – Thomas Construction (Pty) (in Liquidation) v....

by Dentons on

Where a construction contract creates reciprocal obligations, own performance or tender of own performance is a requirement for the enforceability of a claim for counter-performance. This is known as the principle of...more

Legal Notebook: All road(way)s lead to a contractual dispute

by DLA Piper on

The recent decision of RV Pty Limited v Connector Park Pty Ltd (No 2) [2017] TASSC 22 concerned a dispute between two land development companies in relation to a contract which required the construction of an access road. The...more

Limitations on Contract Damages: The ‘Betterment' Argument

by Faegre Baker Daniels on

A fundamental purpose of contract damages is to place a non-breaching party in the same position that it would have been in had its contract not been breached. Accordingly, remediation “enhancements” that give the...more

Fourth Circuit Affirms Dismissal of Contractor’s Complaint, Declining to Create ‘Ultra Vires’ or ‘Bias’ Exceptions to the...

by Pepper Hamilton LLP on

Balfour Beatty Infrastructure, Inc. v. Mayor and City Council of Baltimore, 2017 U.S. App. Lexis 7252 (4th Cir., April 25, 2017) - The United States Court of Appeals for the Fourth Circuit recently addressed whether the...more

A strict enforcement of time bar provisions

by White & Case LLP on

Time bar provisions are a relatively common feature of construction contracts, but often arouse concern because they are seen to be "harsh". A recent case from Northern Ireland confirms that notwithstanding any "harsh"...more

A License to Sue: Appellate Court Upholds Condition of Statute that a Contracting Party Must Hold a Valid Contractor’s License to...

California Business & Professions Code section 7031(a) requires a party to have contractor’s license in order to maintain an action for compensation for services performed for which a contractor’s license is needed. In...more

Owners Beware: Washington Appellate Court Holds Playing ‘Gotcha’ With Project Submittal Review Could Breach the Duty of Good Faith...

by Pepper Hamilton LLP on

Nova Contr., Inc. v. City of Olympia, No. 48644-0-II, 2017 Wash. App. LEXIS 913 (Ct. App. Apr. 18, 2017) - This case arose out of a public project in which the City of Olympia (“City”) hired Nova Contracting, Inc. (“Nova”)...more

Under Construction - June 2017

by Snell & Wilmer on

Welcome to the summer 2017 edition of our Under Construction newsletter. In this issue, to accompany the summer heat, we highlight several hot topic items affecting the construction industry, such as the recent revisions to...more

Three Things to Consider Before Terminating Your Construction Contract

by Faegre Baker Daniels on

The design and construction process is extraordinarily complex, and it rarely proceeds as planned and almost never conforms strictly to the contract documents. These documents often include hundreds of pages of general and...more

Illinois Appellate Court Attempts to Draw the Line Between Contract and Quasi-Contract; Holds That Quantum Meruit Is Only...

by Pepper Hamilton LLP on

Archon Construction Co. v. U.S. Shelter, LLC, 2017 Ill. App. LEXIS 197 (March 31, 2017) - U.S. Shelter, LLC, a developer, undertook to develop a new residential subdivision in Elgin, Illinois. As part of that project,...more

Massachusetts Appellate Court Holds That No-Damages-for-Delay Clause Does Not Bar Claim for Schedule Compression and Affirms Award...

by Pepper Hamilton LLP on

Central Ceilings, Inc. v. Suffolk Constr. Co., Inc., 2017 Mass App. Lexis 36 (March 29, 2017). The Massachusetts State College Building Authority contracted with Suffolk Construction Company (“Suffolk”) to serve as the...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

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

Rhode Island Supreme Court Rules That Despite Deference Afforded Arbitrator, the Award Must Be Vacated Where Arbitrator’s Decision...

by Pepper Hamilton LLP on

Nappa Constr. Mgmt., LLC v. Flynn, 2017 R.I. LEXIS 13 (R.I. Jan. 23, 2017) - Caroline and Vincent Flynn (the “Flynns”) contracted with Nappa Construction Management, LLC (“Nappa”) to construct an automobile repair...more

Missouri appellate court opens the door to Spearin claims by contractors against public entities

by Thompson Coburn LLP on

A Missouri appellate court has for the first time recognized that a construction contractor may pursue a breach of contract claim against a public entity owner based on the “Spearin doctrine,” meaning the contractor may...more

Construction Defect – Application of the Right to Repair Statute to Material Suppliers

by Low, Ball & Lynch on

The Right to Repair Statute in California requires a homeowner show a breach of contract or negligence to succeed. Acqua Vista Homeowners Association v. MWI, Inc. - California Court of Appeals, Fourth Appellate...more

Texas Court of Appeals Holds That Owner’s Change to Contractor’s Means and Methods Resulted in a “Breach,” Instead of a “Change”...

by Pepper Hamilton LLP on

Port of Houston Auth. of Harris Cnty. v. Zachry Constr. Corp., 2016 Tex. App. LEXIS 13306 (Tex. App. Houston 14th Dist. Dec. 15, 2016) - This contract dispute dates back to 2004, when the Port of Houston Authority...more

New FAR Changes Incentivize Prime Contractors Not to Be Deadbeats in Meeting Their Payment Obligations to Their Small Business...

by McCarter & English, LLP on

One common complaint we hear from our subcontractor clients is “HOW CAN WE GET PAID????” Our experience has shown that whether through inadvertence, lack of subcontract management resources – or even as a predatory business...more

The Risks of Suspension under Construction Contracts

by White & Case LLP on

Two recent cases from Australia and Hong Kong highlight the serious dangers of a wrongful suspension of works under a construction contract. Wrongful suspension may ultimately lead to the termination of a contract, and...more

SOPA takes a backseat: The role of cross-demands in setting aside statutory demands issued pursuant to judgments made in terms of...

by Dentons on

The High Court has ruled that a statutory demand based on a judgment pursuant to an adjudication determination made under the Building and Construction Industry Security of Payment Act (SOPA) can be set aside on the ground...more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

by Carlton Fields on

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

New Jersey Federal District Court Holds That Arbitration Clause In AIA A201-1997 Does Not Apply To Post Construction Disputes

by Pepper Hamilton LLP on

Blackman & Co., Inc., v. GE Bus. Fin. Servs., Inc., 2016 U.S. Dist. LEXIS 87904 (D.N.J. July 7, 2016) - Grove Street Realty Urban Renewal, LLC (“Grove Street”) contracted with Blackman & Co., Inc. (“Blackman”) to manage...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

by Pepper Hamilton LLP on

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Federal Court in Maryland Denies Summary Judgment, Holding That Subcontract Provision Placing Responsibility for Property Damage...

by Pepper Hamilton LLP on

Turner Constr. Co. v. BFPE Int’l, Inc., No. JKB-15-368, 2016 U.S. Dist. LEXIS 39161 (D. Md. Mar. 25, 2016) - The University of Maryland Medical Center (“UMMC”) entered into a contract (the “Prime Contract”) with Turner...more

Fifth Circuit Considers Allocation of Risk of Defective Plans and Specifications in Reversing $1.29 Million Judgment Entered in...

by Pepper Hamilton LLP on

Dallas/Fort Worth International Airport Board v. INET Airport Systems, Inc., et al., 2016 U.S. App. LEXIS 6646, 819 F.3d 245 (5th Cir. Apr. 12, 2016) - This action arose out of a construction project in terminal E of...more

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