Construction Contracts

News & Analysis as of

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

Time is Money. Unless You’re an Insurance Company

Imagine this . . . As you’re coming back into your house after relaxing on your deck you say, “honey, is it just me, or does our house seem to be tilting?” Your wife comes out, looks at the house, and says, “gee honey, I...more

Provide Notice (and 10 Other Tasks) When Pursuing a Construction Claim

When dealing with construction claims—whether one for construction defects, outstanding payment, or delay damages—an initial hurdle is making sure that proper notice has been given. Generally, you have to make sure that you...more

Court Of Chancery Explains Jurisdiction For Veil-Piercing

This is an interesting decision for its discussion on what must be pled to obtain Chancery jurisdiction in a claim seeking to pierce the corporate veil. It is not enough to just allege the entity was used to defraud. Rather,...more

Department of Labor Reissues Rules on Fiduciaries Investing in “Economically Targeted Investments”

The Department of Labor (DOL) has clarified the fiduciary implications of an employee benefit plan investing in so-called “socially responsible investments,” sometimes referred to as “impact investments” or “economically...more

“Contractor?” I Do Not Think That Employers’ Liability Exclusion Means What You Think It Means

Over the summer, this blog reported on how the Supreme Court of Pennsylvania managed to parse an employer’s liability exclusion to find that it did not exclude claims by employees of additional insureds. As the leaves started...more

Managing Project Risk With Enforceable Indemnity Agreements

Most contracts in the construction industry supply chain require the “downstream” project participant to indemnify those “upstream” against a spectrum of losses or claims relating to the project. Upstream participants, such...more

Alert: Privy Council rules that 'backwards tracing' can be used to recover bribes

In a landmark ruling the Judicial Committee of the Privy Council (the court of final appeal for the UK overseas territories and Crown dependencies) has, for the first time, allowed the equitable process of tracing to be...more

Third Circuit Allows for Offset when Calculating Loss in DBE Fraud Cases

In United States v. Nagle, the Third Circuit provided instruction on how to calculate the amount of “loss” defendants are attributed when being sentenced in a Disadvantaged Business Enterprise (“DBE”) fraud case. Going...more

Kentucky Court Affirms Consumer Act Claim Does Not Apply to Real Estate Transactions

In Kennedy v. Parks, the Kentucky Court of Appeals affirmed that the Kentucky Consumer Protection Act (CPA) does not apply to real estate transactions. In Kennedy, the plaintiffs entered into a contract with a builder...more

Standing of Petrobras Opt-Out Plaintiffs Challenged

A recent motion to dismiss filed by the defendants in the In re Petrobras Securities Litigation, No. 14-cv-9662 (S.D.N.Y.) consolidated litigation challenges the standing of several institutional opt-out plaintiffs. ...more

Partial Subordination Agreement not Involving or Affecting Mechanics Lien Claimant Priority is Enforceable in Nevada

When visible construction begins, Nevada law says mechanic’s liens attach to the construction site. A construction lender wants to ensure that its deed of trust securing the construction loan has first priority to the...more

Limitations of liability—Scenario One: Waivers of Consequential Damages

This is the second post in the four-part series “Limitations of liability—The Elephant in the Room.” Waivers of consequential damages have become the industry standard, and these clauses are found in most industry...more

Proving Contractor Licensure in California. The Tribe Has Spoken.

As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate  – the judge or the jury?...more

Limitations of Liability – The Elephant in the Room

This is the first post in the four-part series “Limitations of liability—The Elephant in the Room.” One or more of the following scenarios takes place in my office virtually every day...more

Doing Business in Australia: Infrastructure and Construction

DLA Piper has launched the second edition of "Doing Business in Australia: Infrastructure and Construction", a guide to the delivery of infrastructure in Australia. The guide looks at different procurement models including...more

Third Circuit Decision Could Have Broad Implications For Sentencing In Federal Fraud Cases

Last week, the Third Circuit issued a decision that could have major ramifications for sentencing in federal fraud cases. United States v. Nagle dealt with a fraud perpetrated against the Department of Transportation’s...more

Attorney General Crackdown on DBE/MBE Representations in Subcontracts

The Massachusetts Attorney General is taking action to ensure that general contractors working on public construction are complying with state requirements to use DBE/MBE subcontractors....more

Letters of the Law: 'T' is for Termination

Termination is the ultimate self-help remedy under a construction contract, but is it really a “self” help remedy? Most construction contracts contain some provisions for termination, including FIDIC and the FIDIC based...more

Public Owners Held to Warrant Accuracy of Plans to Construction Managers

A recent Massachusetts Supreme Judicial Court decision clarified that public owners on construction management projects impliedly warrant the accuracy of plans and specifications to construction managers. The case, Coghlin...more

Pennsylvania Court Refuses to Enforce “No Damages for Delay” Clause

A Pennsylvania appellate court recently refused to enforce a “no damages for delay” clause and upheld an award of delay damages against a school district where the district actively interfered with a general contractor’s...more

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