Construction Contracts

News & Analysis as of

Security on Large Construction Projects. The Payment Remedy You Probably Never Heard of

California has a number of statutory payment remedies available on construction projects. Some, such as the mechanics lien, are relatively well known and often utilized. Others, such as the stop payment notice, are somewhat...more

Privity Of Contract Is Still The Rule For Breach-Of-Implied-Warranty Claims Against Subcontractors, Even For New Home Construction

Arizona has long recognized the existence of an implied warranty arising out of new home construction. In Columbia Western Corp. v. Vela., the Arizona Court of Appeals expanded implied warranty liability to cover...more

Federal District Court Holds that General Contractor’s Failure to Provide Notice of Default Does Not Preclude Recovery on...

Curtiss-Manes-Schulte, Inc. v. Safeco Insurance Company, 2015 U.S. Dist. LEXIS 10032 (W.D. Mo. 2015) - This dispute between a general contractor and its subcontractor’s performance bond surety arose out of a renovation...more

Appellate Court Notes

- SC19245 - Nation-Bailey v. Bailey - SC19245 Concurrence - Nation-Bailey v. Bailey Holding that a separation agreement that requires the payment of unallocated alimony and child support ‘‘until the …. [w]ife’s...more

Termination for Convenience Contract Provision Retains Responsibility for Liquidated Damages

Most construction contracts between an owner and prime contractor provide the owner with the right to terminate the contract for cause or for convenience. In an important decision released in early April, the Connecticut...more

Letters of the Law: 'H' is for Handing Over

Getting in, getting on and getting out is how contractors make their money and having a completed project to put to use is how employers make theirs. Getting to the point of handing over the works is, usually, high priority...more

Third Circuit Holds Subcontractor To Its Proposal On Grounds of Promissory Estoppel

DCK TTEC, LLC v. Postel Industries, Inc., 2015 U.S. App. LEXIS 2775 (3d Cir. Feb. 25, 2015) - This action arose out of the construction of two maintenance hangars at the Marine Corps Air Station in Yuma, Arizona (the...more

Construction Lien Law: What You Need to Know to Protect Your Company [Video]

Presented by Tobey Coleman and Emily Yeatts This webinar provides an overview of North Carolina’s construction lien laws and how they apply to and impact each party involved in a typical construction project – owners and...more

Alberta Court Clarifies Builders’ Lien Registration When Contract Abandoned

On February 25, 2015, the Alberta Court of Appeal released its decision in Tervita Corporation v. ConCreate USL (GP) Inc. In that case, the court was required to determine whether a builders’ lien registered by Tervita...more

The Danger of Contracting with a Tenant for Improvements to Real Property

You’ve completed your work, payment is past due and you’re ready to record a construction lien... then you discover your client is a tenant, not an owner. Your ability to lien may be far more limited under Florida law than...more

Senate Tightens Requirements for Construction Defect Claims

The Florida Senate is following a recent national trend of tightening its laws governing construction defect claims. Currently, under FL. Stat. § 558.004, entitled Notice and Opportunity to Repair, a party claiming a...more

Letters of the Law: 'G' is for Guarantee

Security in the form of guarantees (or bonds) is common practice in construction projects. With contractors, sub-contractors, suppliers and even consultants being required to provide some or all of tender, performance,...more

Senate Tightens Requirements for Construction Defect Claims

The Florida Senate is following a recent national trend of tightening its laws governing construction defect claims. Currently, under FL. Stat. § 558.004, entitled Notice and Opportunity to Repair, a party claiming a...more

Arizona’s New Construction Defect Law is Effective the Summer of 2015

On March 23, 2015, Arizona Governor, Doug Ducey, signed into law House Bill 2578. This new legislation relates specifically to Arizona’s construction defect claims and revises the Purchaser Dwelling Actions statute - ARS §...more

Court of Federal Claims Holds that Contractor’s Defense of Defective Specifications Is Not an Independent Claim Requiring...

Total Eng’g, Inc. v. United States, 2015 U.S. Claims LEXIS 30 (Fed. Cl. Jan. 26, 2015) - The United States Army Corps of Engineers (the “Government”) awarded a contract to Total Engineering, Inc. (“Total”) for preliminary...more

Anatomy of an Indemnity Provision - Construction Practice Newsletter

Indemnity clauses are one of the most negotiated (and litigated) provisions in a construction contract. - They’re also one of the least understood. - But we’re here to dissect it for you, so to speak. ...more

A Beacon for Homeowners and HOAs. Not So Much for Design Professionals - Construction Practice Newsletter

Earlier we wrote about a case that made architects none too happy – Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, Case No. A134542 (December 13, 2012) – in which the California Court of Appeals...more

TOP TEN Construction Clauses - The “Work” Clause

This clause defines the scope of work in a construction project and the definition varies by source. For instance, American Institute of Architects Document A201-2007 defines "Work" as "construction and services required by...more

Letters of the Law: 'F' is for Fire Safety

A to Z of Construction Law in Qatar Series - Achieving fire safety standards is paramount for the successful completion of many construction and engineering projects but what approval is needed, how does it affect the...more

Failing to Pay Prevailing Wages May Have Just Cost You More Than You Thought

Mechanics lien claims, payment bond claims, stop payment notice claims, delay claims, defect claims, abandonment claims . . . With the variety of claims unique to construction projects it’s easy to forget that...more

Construction Law Developments in 2015 Colorado Legislative Session

In the first two months of its 2015 session, the Colorado General Assembly has introduced two bills that could have a significant impact on construction law in Colorado....more

They Can’t Take That Away From Me. Well, At Least Not At First

Some of you may recall the George and Ira Gershwin song, They Can’t Take That Away From Me made famous by Fred Astaire and Ginger Rogers in the film, Shall We Dance. A recent amendment to a mechanic’s lien statute will limit...more

2014 A Busy Year for Pennsylvania Mechanics' Lien Law: More New Changes Take Effect

When it comes to the Pennsylvania Mechanics’ Lien Law (Lien Statute), the Pennsylvania legislature was quite active in 2014. In July, Governor Corbett signed into law certain changes to the Lien Statute affecting residential...more

Delay and Disruption Claims: Big Impacts on Your Bottom Line

“Time is money” in construction. Owners, design professionals and contractors use time to calculate the impact of lost performance. Yet delay and disruption can be commonplace in construction projects. The reasons for the...more

Payment Clauses In Construction Contracts - The Importance Of Serving Notices

An employer's failure to serve the correct payment notices (a payment notice or pay less notice) under a construction contract can result in the contractor being entitled to all sums being claimed by him in his application...more

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