Construction Contracts

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Prepare Now for Minnesota Responsible Contractor Law

Contractors should prepare for Minnesota's Responsible Contractor Law, which will apply to most bid solicitations for state and local construction contracts in Minnesota issued after December 31, 2015. The law will apply to...more

To Require Arbitration or Not To Require Arbitration

Thoughts on mandatory arbitration in construction dispute resolution at Construction Law Musings. Be sure to draft your arbitration clauses carefully in your construction contracts in order to avoid unnecessary headaches and...more

Like Hats and Belt Buckles, Indemnity Agreements in Texas Must be CONSPICUOUS

Earlier this month, the U.S. Court of Appeals for the Tenth Circuit held that Texas law allows an indemnity agreement to insulate a party from the consequences of its own, allegedly negligent conduct, but only if that feature...more

December 2014 - Real Estate FOUNDATION

In this issue - The CERCLA Divisibilty Defense: Back from the Dead? - Springing Recourse for Breach of Solvency and Debt Payment Covenants? Does New York Need Cherryland Legislation? - Mid-Construction...more

General Contractors Beware of Subordination Clauses

In California, a general contractor can usually rest assured that in the event of nonpayment, it can rely upon the remedy of a mechanics lien, which remedy is, in fact, even a constitutional right....more

Tenth Circuit: Property Damage Surrounding Defective Windows Is an “Occurrence” Because Damage Is Unexpected from Insured’s...

In Cincinnati Insurance Company v. AMSCO Windows, No. 13-4155 (10th Cir. November 26, 2014), Cincinnati insured AMSCO, which manufactures windows for use in homes and sells the windows to distributors. Certain AMSCO windows...more

AIA Construction Contract Issues: An Owner’s Perspective

MANY CONSTRUCTION PROJECTS ARE DOCUMENTED USING AIA FORMS. These forms focus on issues concerning the architect and contractor. It is in the owner’s interest to protect itself by negotiating the key provisions in the...more

General Contractor’s Prospective Waiver of its Lien Rights is Enforceable in California

In an opinion published in September 2014, entitled Moorefield Construction, Inc. v. Intervest Mortgage Investment Company, et al., D065464, the California Court of Appeal held an original contractor can contractually waive...more

Illinois Court Holds Relief Available to a Sub-Subcontractor Under an Unjust Enrichment Theory for Work Requested but Not Paid for...

C. Szabo Contracting, Inc. v. Lorig Construction Co., 2014 IL App (2d) 131328; 2014 Ill. App. LEXIS 699 (Sept. 29, 2014) - In May of 2006, the Illinois State Toll Highway Authority (“Highway Authority”) retained...more

Innovative P3 May Help Chesapeake Bay Stick to its Diet

Maryland’s Prince George’s County Council has approved a first-of-its kind agreement with Corvias Solutions for a 30-year stormwater management public-private partnership (P3). The novel initiative, formally announced by EPA...more

Arizona Prime Contracting Tax Reform is Knocking at Your Door; Are You Ready?

By now, many within the construction industry in Arizona are aware that significant effort has been made over the past few years to reform Arizona’s state and local transaction privilege tax (TPT) system, particularly as it...more

Recent Developments in Arizona Construction Law

Notable 2014 Case Law: Bonds - In Ponderosa Fire District v. Coconino County, 235 Ariz. 597 (Ct. App. Ariz. 2014), the Court of Appeals considered whether the County had discretion to decide not to call...more

The Massachusetts Retainage Act: A Breakdown

A new law is now in effect for contracts executed after November 6, 2014, that not only affects the amount of retainage that a construction stakeholder may withhold but also mandates processes for project completion. In...more

What are the unique dynamics of a low-income housing tax credit workout?

Note: This post is part of a continuing series on the Credit Report Blog on the subject of workouts and bankruptcies involving low-income housing tax credit (LIHTC) projects. ...more

Construction and Engineering Brief: Obtaining Bonds And Collateral Warranties

In a recent case that came before the High Court, the Technology and Construction Court (a specialist court within the English High Court, "TCC") has shown that it will go to great lengths to enforce obligations to deliver...more

U.S. District Court in Pennsylvania Dismisses Owner’s Claim Against Performance Bond Surety – Repeated Instances of Poor...

Milton Reg’l Sewer Auth. v. Travelers Casualty & Surety Co., 2014 U.S. Dist. LEXIS 155419 (M.D. Pa. Nov. 3, 2014) - The United States District Court for the Middle District of Pennsylvania ruled that multiple...more

A Cautionary Tale for General Contractors

Construction lenders often go to great lengths to ensure their deeds of trust have priority over mechanic’s liens. Typically, as part of the construction loan process, general contractors are asked to sign documents...more

Not in My Kitchen – California Supreme Court Decertifies Golden State Boring Case

On November 11, 2014, the California Supreme Court rejected the recent California Court of Appeals decision Golden State Boring & Pipe Jacking, Inc. v Eastern Municipal Water District, 228 Cal.App.4th 273 (2014) which we...more

The Construction Advantage – Issue 11

Welcome to the first Thanksgiving edition of The Construction Advantage! In this issue, we bring you yet another tale of a mechanics lien case and a priority between an engineer and a lender in a failed golf course project....more

California Court Holds Mechanic’s Lien Claimants Entitled to Pre-Judgment Interest of 7 Percent, Not 10 Percent, Against...

Under California Civil Code (CC) Section 3289, a mechanic’s lien claimant may obtain pre-judgment interest against contracting property owners calculated at 10 percent per annum from the date of breach. In Palomar Grading &...more

Time Limit on Filing Certain Construction Lawsuits Extended

A recent Illinois Appellate Court decision extends the time period in which a certain type of legal claim can be made against a general contractor on a construction project. The decision, 15th Place Condominium Association v....more

Recent Changes to the Mechanics’ Law

Mechanics’ Lien - • An In Rem lien (against real property). • For the payment of all debts due by an owner to a contractor (or by a contractor to his subcontractors) for Labor or Materials furnished....more

Ninth Circuit Enforces Waiver of Subrogation Clause in Design/Build Agreement Against Post-Construction Property Insurer

Travelers Indem. Co. v. Crown Corr, Inc., 2014 U.S. App. LEXIS 21101 (9th Cir. 2014) - This action arose out of the construction of the University of Phoenix Stadium (the “Stadium”), home of the Arizona Cardinals. ...more

Statutory Limit on Change Orders Bars Contractor Claim in Virginia

A recent Virginia case strictly construing a statutory limit on the amount of contract change orders has raised concerns among contractors doing business with Virginia state and local agencies. In Carnell Construction Corp....more

CEB’s Mechanics Liens and Related Remedies – 2014 Update

I’ve been writing for the CEB – the Continuing Education of the Bar – which publishes legal practice guides for lawyers for some time now. But I don’t think I’ve been quite as excited to write for the CEB than writing...more

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