Construction Contracts

News & Analysis as of

Design-Build Contractors Get Ready to Go Back to School

For bid requests issued on or after July 1, 2016, California school districts, with approval of their governing board, Schoolmay procure design-build contracts for projects in excess of $1M, awarding the contract to either...more

North Carolina Court of Appeals Declines to Enforce Arbitration Clause in Construction Contract

An arbitration clause in a contract can affect the method parties will use to resolve disputes, what remedies are available to them, and, most importantly, where they will arbitrate and what state's laws will apply. A recent...more

Defence & Indemnity - April 2016: V. SURETY AND BOND ISSUES

Liability of surety in Quebec under a labour and material payment bond consistent with common law principles L’Unique Assurances Générales inc., Appelante, c Échafauds Plus (Laval) inc., Intimée, 2015 QCCA 1725 [4174]...more

Critical Amendments to Minnesota's Prompt Payment and Retainage Laws

The Minnesota legislature recently passed a bill significantly amending Minnesota's prompt payment statute. The revised statute specifically authorizes contractors and subcontractors of any tier to stop work if they are not...more

Who Assumes the Risk of Material Cost Increases? As Always, It Depends!

When a client asks me about a particular contract provision and why it is “unfair” or “uneven”, we began a discussion about risk allocation. You see, the contract is used to shift the various risks on the project to the party...more

Do Change Orders Need to be in Writing and Other Things That Might Surprise You

You’ve likely heard it before or maybe you’ve even said it yourself: “Go ahead and get started, we’ll get you a change order later.” The only thing is, “later” never happens, and after you’ve finished performing the work...more

Subcontractor Not Entitled to Payment After Refusal to Perform Disputed Extra Work

In the hustle and bustle of completing a construction project it can be easy to overlook the importance of the contract.  However, when a dispute arises the contract generally dictates the outcome of that dispute.  A recent...more

Recent Decision Underscores the Importance of Keeping Detailed and Accurate Daily Logs

The Armed Services Board of Contract Appeals’ (ASBCA) recent decision in Dick Pacific Constr. Co., Ltd, serves as an important reminder to federal construction contractors that keeping consistent and detailed daily logs is...more

Construction Subcontractor Settles FCA Allegations for $2.8 Million

A recent settlement illustrates the broad reach of the FCA and the substantial liability that “mere retention” of an overpayment can impose on contractors several steps removed from a government contract. The dispute...more

Innovative Construction Contracting Formats – Will They Succeed?

As we move further into the 21st century, we continue to see new trends develop in project delivery for the construction industry. The industry is experimenting with different project delivery formats and combining them with...more

Defects during the project life cycle: FIDC and UAE law

Defects affect construction projects throughout their life-cycle – from design to construction to use. UAE law and the FIDIC Red Book, the most common form of construction contract adopted in the UAE, have numerous provisions...more

Penal or not Penal? The perennial debate continues with a sting in the tail

The doctrine of penalty has often been debated, yet the applicable law is still in the making. Recent decisions by Australian and UK courts are the latest in a series of cases which demonstrate the unsettled nature of the...more

If it Walks Like a Duck - Construction Management at Risk Contracts a Risky Move for Cities

A growing number of Minnesota cities may be violating the competitive bidding laws by awarding construction management at risk (CM at risk) contracts for new facilities. With few exceptions, cities and other public...more

Resolving construction disputes

Claims are made virtually daily on construction projects in Canada, and most are resolved in a timely way. But when a dispute remains unresolved, the consequences can be disastrous, whether it results in a termination, a...more

Real News - Spring 2016

Earlier this year, David Cameron fired the starting gun on whether Britain should continue its membership of the EU. As we all know, the potential effect of a Brexit is a topic which has divided the opinions not only of our...more

Dealing with Mechanic’s Liens Which Arise After Completion of Construction

Construction is complete on your new home and you are busy settling in to your new surroundings and then you receive notice that a mechanic’s lien has been recorded and is now encumbering your property. You discover that one...more

Ohio Supreme Court Holds Reasonableness of Liquidated Damage Provision to Be Determined Based Upon the Parties’ Knowledge at Time...

Boone Coleman Constr., Inc. v. Vill. of Piketon, 2016-Ohio-628, 2016 Ohio LEXIS 441 (Ohio Feb. 24, 2016) - A general contractor entered into a construction contract with a public agency for a road construction project...more

Owners and Developers Beware: Federal Law Preempts Your Remedies Against Design Professionals for ADA Violations

Recent years have seen a proliferation of lawsuits against building owners and businesses for violation of the accessibility requirements of the Americans with Disabilities Act (ADA). Not only restaurants, but also hotels,...more

Your Invaluable Mechanic’s Lien Rights – Exercise Them!

The right to file a mechanic’s lien is established by state statute, allowing those providing work, services, materials or equipment to a construction project with additional valuable security in the event of non-payment of...more

Do No-Damage-for-Delay Clauses Bar Acceleration Claims?

Time is money in construction, and project delays can cause contractors to incur substantial additional costs. To avoid responsibility for paying these costs, project owners often include a no-damage-for-delay (NDFD) clause...more

Construction Group Projects

Robinson+Cole’s construction lawyers worked on many significant and unique projects across the country worth billions of dollars in construction value in recent months. Our clients are owners, designers, and contractors, and...more

Pennsylvania Commonwealth Court Holds Enforceable School District’s Oral Promise to Pay Subcontractor for Returning to Job after...

Zacherl, Inc. v. Flaherty Mechanical Contractors, LLC, 131 A.3d 1030, 2016 Pa. Commw. LEXIS 22 (Jan. 6, 2016) - The West Allegheny School Board (the “School Board”) voted to approve the School District’s (the...more

Three Rules for Every Change on Every Construction Project

A construction contract without a changes clause is like a boat without a captain. The boat will never reach its destination, and the construction project will never reach proper completion. The changes clause protects owners...more

Obligation to Perform Work and Incur Costs Under Construction Contract is a Section 752 Liability

In a recently issued Private Letter Ruling (PLR 201608001), the IRS determined that a taxpayer-partnership’s obligation to perform work and incur costs under a long-term construction contract constituted a partnership...more

Exceptions to the temporary finality of interim payment certificates and the architect’s role in enforcement proceedings - A case...

The issue before the Court of Appeal was whether an employer could establish any exceptions in clause 31(13) of the Singapore Institute of Architects Articles and Conditions of Building Contract (“SIA Conditions”) to...more

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