Construction Contracts

News & Analysis as of

Below $30 - Disputes in a Low Oil Price World

The news that crude prices fell below $30 per barrel - the lowest in 10 years - was not greeted with shock but by predictions that they might continue to fall and would stay low for some time. Any attempt to predict the...more

Government Contracts Review, Alston & Bird LLP, January 2016

IN THIS EDITION: THE GOVCON FILES - It’s Good to Be King: The Curious Case of United States v. JAAAT Technical Services PROTEST DECISIONS - GAO Clarifies Discussions and Discusses clarifications...more

UPDATE: Challenges to Standing of Petrobras Opt-Out Plaintiffs Denied

As a follow-up to our October 15 discussion about challenges to the standing of certain opt-out plaintiffs in the In re Petrobras Securities Litigation, No. 14-cv-9662 (S.D.N.Y.) consolidated litigation, Judge Rakoff has...more

Subcontractor Performing Services may be Liable in Strict Liability For Purchasing and Installing Defective Products in Fulfilling...

Jovana Hernandezcueva v. E. F. Brady Company, Inc. - Court of Appeal, Second Appellate District, Division Four (December 22, 2015) - The doctrine of strict liability is ordinarily inapplicable to transactions...more

"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties

Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work....more

Court Of Chancery Explains Arbitration Timelines

This decision explains the timelines for seeking to vacate an arbitration award. It illustrates that an arbitration proceeding has its own rules that the parties better understand or lose their rights....more

Construction Group News: Contractor Terminated by Owner Can Sue for Interference

A contractor terminated by a project owner brought suit against the architect alleging that the architect falsely certified grounds for termination. Barr Inc. v. Studio One, Inc., 2015 U.S. Dist. LEXIS 156007. C.A. No....more

Construction News - December 2015

Evolution in the Law – Is a “Right to Repair Act” in Pennsylvania’s Future? Various states have attempted through legislation to reduce litigation and increase constructive engagement in construction projects. One...more

Appellate Court Notes

Appellate Court Advance Release Opinions: Released after 11:30 a.m. AC36320 - Valencis v. Nyberg - This decision upheld the granting of a PJR for ~ $1.5 million in favor of the plaintiff property owner when the...more

New Legislation Threatens to Further Erode Market Share of Non-Trade Union Contractors in California

In January 2016, two new laws go into effect that will change the face of various public and private construction projects in California. These new rules represent the latest in an ongoing effort by the State Building and...more

Appellate Court Notes

Supreme Court Advance Release Opinions: - SC19165 - Dept. of Transportation v. White Oak Corp. - SC19165 Dissent - Dept. of Transportation v. White Oak Corp. Despite a very convoluted history, the essence of...more

Final Acceptance Under Utah’s Retainage Law: It’s Not Over Until It’s Over

Property owners seeking to insulate themselves from some of the inherent risks associated with construction projects often turn to retainage provisions to reallocate very specific risks—the risks of delay, defective...more

Three Common Construction Contracts

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

Unanticipated Site Conditions – Beware the Danger Below - Brad Gould Trucking & Excavating Ltd v Bird Construction Co, 2015 NBCA...

The recent New Brunswick Court of Appeal decision in Brad Gould Trucking & Excavating Ltd v Bird Construction Co, 2015 NBCA 47 [Brad Gould], serves as a warning to contractors that a failure to understand the contractual...more

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

[Event] Construction Liens: Understand the Complexities; Protect Your Interest - Jan. 13th, Grand Rapids, MI

Please join us to learn about the Michigan Construction Lien Act and other important laws affecting the construction industry. Learn how to use the lien act to secure payment for your work and avoid common...more

Washington State Court Upholds Termination For Convenience Clause in Subcontract – Partial Performance Provides Adequate...

SAK & Assocs. v. Ferguson Constr., Inc., 189 Wn. App. 405 (Wash. Ct. App. 2015) - Ferguson Construction, Inc. (“General Contractor”) entered into a fixed sum contract (the “Subcontract”) with SAK & Associates...more

Defenses to a Termination for Default

In a post published in 2013, we addressed the use of termination for default as a weapon. Unfortunately, construction contractors who fall behind schedule are automatically on the defensive and they rarely find that...more

Letters of the Law: 'X' is for eXceptionally adverse weather conditions

A to Z of Construction Law in Qatar Series Sandstorms and high wind speeds prevent the operation of cranes. Extreme temperatures can impact on productively. Even unexpected heavy rainfall can effect site operations in...more

Differing Site Condition Defense Rejected

The Court of Appeals of Washington recently decided King County v. Vinci Construction Grands Projects/Parsons RCI/Frontier-Kemper, JV, a dispute between a joint venture contractor (the Contractor) and King County, Washington...more

Recent Developments: Dispute Resolution What you need to know

Welcome to this edition of Allen & Overy’s Recent Developments –‘What you need to know’. The purpose of this alert is to keep you updated on the recent legal developments relevant to your industry, and let you know...more

New York Commercial Division to Tighten Eligibility Requirements For Two Categories of Disputes

Parties and counsel involved in disputes arising out of domestic arbitrations or home improvement contracts soon will have to clear heightened eligibility requirements before being able to proceed in the Commercial Division...more

Can Contract Ambiguity Cause Liability for Unfair Trade Practices?

Most of the time, a contract breach—even if intentional—does not violate N.C. Gen. Stat. § 75-1.1. A contract breach, however, can turn into a 75-1.1 violation if the breach is accompanied by “substantial aggravating...more

Federal Appeals Court Wrestles With Definition of “New” Equipment

In Reliable Contracting Group, LLC v. Department of Veterans Affairs, 779 F.3d 1329 (10th Cir. 2015), the Court of Appeals for the 10th Federal Circuit recently interpreted contract terms requiring that equipment installed...more

Limitations of Liability— Scenario Two: No Damages for Delay Clauses

Owners often attempt to limit their liability to contractors through what is commonly known in the construction industry as a “no damages for delays” clause. Much like waivers of consequential damages, a “no damages for...more

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