Construction Contracts

News & Analysis as of

Lump Sum Contracts: Not always certain?

"Lump sum fixed price" is a well-established method of construction contracting in the Middle East and many other regions of the world. Its selling point is price certainty. However, as two recent cases highlight, defining a...more

Minnesota Rewrites Construction Rules for Prompt Payment and Retainage

Minnesota has modified its prompt payment and retainage statute (Minn. Stat. 337.10). These revisions mean that many owners, contractors and subcontractors will have to revise the payment provisions of their construction...more

Federal Claims Court Holds that Government’s Actual Knowledge of Contractor’s Delay and Acceleration Excuses Technical...

Nova Group/Tutor-Saliba v. United States, 125 Fed. Cl. 469 (Fed. Cl. Mar 16, 2016) - The United States Naval Facilities Engineering Command (the “Navy”) contracted with the joint venture of Nova Group and Tutor-Saliva...more

Setting the Right Expectations for your Owner Client– Craft your Scope of Work well (law note)

Regular readers of this blog know that you absolutely should have a written contract, and not rely on “gentlemen’s agreements.” But what is the most important part of your agreement to provide professional services? The...more

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

Obligee's claim against surety can survive despite Obligee's claim against principal being unenforceable as a result of wording of completion agreement - HOOPP Realty Inc. v. The Guarantee Company of North America, 2015...more

South Carolina Supreme Court Decision Impacts Enforceability of Arbitration Provisions in New Residential Construction Sales...

On July 6, 2016, the South Carolina Supreme Court filed its Opinion No. 27645, captioned Smith v. D.R. Horton, Inc., in which it affirmed the Court of Appeals' refusal to compel arbitration between new home purchasers and the...more

Western District of Virginia Confronts Several Legal Issues That Frequently Impact Multi-Party Construction Disputes – Economic...

Allstate Insurance Company v. Structures Design/Build, LLC, 2016 U.S. Dist. LEXIS 34349 (WD VA March 17, 2016) - This construction dispute case arises from a failed pipe connector that caused water damage to a facility...more

Changes to the resolution of domestic building disputes in Victoria

The Building Legislation Amendment (Consumer Protection) Act 2016 (BLA Act) will come into operation on 1 July 2017 changing the way domestic building disputes are handled under the Domestic Building Contracts Act 1995 (DBC...more

The "Lien-Ability" of Field Change Directives Under Typical Construction Lien Laws?

Consider this scenario taken from an actual project dispute: The contractor has entered into an agreement with the owner for a project of any size. During the course of the project, the owner directs the contractor to perform...more

Transmission Planning and Construction Right of First Refusal Ruled Unduly Discriminatory, Not Mobile-Sierra Protected

The provision contained in incumbent electric utility tariffs—conferring on the holder the right of first refusal (ROFR) to construct additions to the high-voltage electrical grid, regardless of who conceived of and proposed...more

Twenty-Five Years in the Construction Industry—We’ve Come a Long Way Baby, or Have We?

In November 1989, I was a second year law student interviewing with firms in Connecticut and New York for a summer associate position. During the Thanksgiving Holiday, I scheduled an interview with a small firm in New Haven....more

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

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

AAA’s Revised Construction Industry Arbitration Rules and Mediation Procedures

The American Arbitration Association (“AAA”) recently revised its Construction Industry Arbitration Rules and Mediation Procedures. The revised rules became effective on July 1, 2015 and include a host of changes, large and...more

Homeowners Who Purchase Directly from Homebuilders May Seek Recovery of Attorneys’ Fees on Claims for Breach of the Implied...

Three things have long been settled law in Arizona regarding residential construction: (1) a homebuilder owes a homeowner an implied warranty of workmanship and habitability with regard to the construction of the home; (2)...more

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

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

Is a lump sum contract a feature of a "design and build" contract? - A case study of Goh Eng Lee Andy v Yeo Jin Kow [2016] SGHC...

Is a lump sum contract a feature of a "design and build" contract? This was the central issue that the High Court had to decide in the recent case of Goh Eng Lee Andy v Yeo Jin Kow [2016] SGHC 110. After examining the...more

An Owner’s Guide to Notices of Completion, Cessation and Non-Responsibility

We talk a lot about contractors on the California Construction Law Blog. Owners? Not so much. So this one’s for you...more

Clarifying the law on repeat claims and post-termination claims under the Security of Payment Act - A case study of Asplenium Land...

The Singapore High Court’s recent decision in Asplenium Land Pte Ltd v CKR Contract Services Pte Ltd [2016] SGHC 85 has perhaps finally put to bed the issue as to what constitutes a repeat claim that is prohibited under the...more

Texas District Court Rejects Rail Contractor’s Delay and Prompt Payment Claims and Awards Owner More Than $3 Million

Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016) - The contractor contracted with owner to install 65 miles of railroad track, for a price of...more

How to Circumvent “No Damages for Delay” Clauses

Most commercial construction contracts contain a “No Damage For Delay” Clause and most contractors mistakenly believe they are Kings X for any potential claims related to delay caused by an owner or original contractor. ...more

Subcontractor’s Failure to Strictly Comply With Notice Provision Costs $200,000

Whether you are an owner, contractor, subcontractor or supplier, you will want to read the rest of this post since it illustrates precisely what all those attorneys have been telling you for years: “Please, please, please...more

First conviction made under the Bribery Act

A substantial fine of £1.4 million in addition to costs and a confiscation order of £851,152.23 has been made against The Sweett Group plc following its conviction under section 7 of the Bribery Act 2010. The company had...more

An update on payment issues on UK construction projects

In our Winter edition, we highlighted a number of government initiatives to improve the payment cycle in the industry and suggested sticking to payment procedures as well as remembering your right to adjudication. ...more

Construction news round-up: our regulations, contracts and industry

Our construction round-up covers our pick of industry news, regulatory, industry and contractual issues from the last few months that affect UK construction businesses....more

Contract negotiations: good drafting matters

In our dispute resolution work, we see many examples of disputes arising because contract terms were unclear or not tailored to the specific project. There have been a number of decisions recently that provide clear examples...more

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