Construction Contracts

News & Analysis as of

JAMS Global Construction Solutions Newsletter, Summer 2016

Q&A with Linda Turteltaub, Skanska USA Building - Today, we are talking with Linda Turteltaub, Corporate Counsel, Skanska USA Building. Linda has worked in both construction and as a construction lawyer prior to joining...more

Unpaid construction work? Stay calm – and make sure every word of your mechanics lien is accurate

Not getting paid infuriates most contractors and material suppliers. Don’t let that anger cause you to make a bad situation worse by overdoing a mechanics lien. By the time a contractor reaches the point of recording a...more

FAR Council and DOL Issue Final Rule Implementing Fair Pay & Safe Workplaces Executive Order

The Federal Acquisition Regulatory Council and the Department of Labor published a final rule, implementing the Fair Pay and Safe Workplaces Executive Order (also known as the “blacklisting” Executive Order), on August 24,...more

Litigating Against the Government? Recent Decision Regarding Claim Certification Dispute Proves That Forrest Gump's Mama Was Right...

Forrest Gump’s mama was a brilliant woman. As anyone who watched the 1994 Academy Award-winning classic can confirm, Mrs. Gump’s advice to her son provided an indispensable well of wisdom from which Forrest often drew to...more

Standard is Not Always Fair - Six Questions Owners Should Answer Before Entering a Construction Contract

Construction documents, whether for a new building project or for a build out of tenant improvements, can be quite involved and perhaps a little daunting to an owner presented with “standard” American Institute of Architects...more

Is it the End of Lease-Leasebacks as We Know it?

TEOTWAWKI. The end of the world as we know it. For K-12 school construction contractors it could well be. Although their acronym would likely be TEOLLAWKI. The end of lease-leasebacks as we know it....more

Title Insurance Treatment of Mechanic’s Liens

The “Homeowner Amendments” to Ohio Mechanic’s Lien law significantly limits the rights of subcontractors and suppliers to file mechanic’s liens against a homeowner’s property. These apply if the owner has paid the builder in...more

CEO of World Trade Center contractor found guilty of fraud by misstating compliance with Port Authority’s minority- and...

Public entities at the Federal, state, and local levels set aside contracting opportunities, provide preferential price treatment, or otherwise grant favorable treatment to contractors (1) owned by veterans, women,...more

Court of Appeals of Michigan Holds Contractor Cannot Recover Eichleay Damages from Supplier Absent Contractual Right and Proof...

ITT Water & Wastewater USA, Inc. v. L. D’Agostini & Sons, Inc., 2016 Mich. App. LEXIS 579 (March 17, 2016) - This action arises out of a contract dispute between plaintiff, ITT Water & Wastewater USA, Inc. (“ITT”), and...more

Contract Interpretation: Whether The Contract Is A Non-Insurance Indemnity Agreement Or An Insurance Policy Makes A Big Difference...

In Crawford v. Weather Shield Mfg., Inc. (2008) 44 Cal. 4th 541, 187 P.3d 424, 79 Cal.Rptr.3d 721, the California Supreme Court addressed an indemnitor’s duty to defend the indemnitee under a non-insurance indemnity agreement...more

Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract

In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions. The general contractor said that its fire sprinkler subcontractor was...more

Looking Forward: A workman’s view of the construction business and the practice of construction law

A few weeks back my colleague, mentor and friend Greg Faulkner wrote a post here that looked back on his 25 years as a construction lawyer.  It was a very thoughtful piece and frankly I think it was one of the best legal blog...more

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Contractor’s Failure to “Strictly Comply” With Notice Provision Precludes Contract Damages Award

In the New York case of Schindler Elevator Corporation v. Tully Construction Co., Inc., 139 A.D.3d 930 (2d Dep’t 2016), the plaintiff sought recovery of additional expenses and costs it allegedly incurred as a result of...more

Recent Developments in Petrobras Class Action Could Interfere with Trial Date

There have been several recent and interesting updates to the In re Petrobras Securities Litigation, 14-cv-9662 (S.D.N.Y.) that we have discussed several times on this blog. First, the Second Circuit has decided to accept...more

California Court Limits Recovery for General Contractors Relying on Subcontractor Bids

The court’s decision allows subcontractors to place unforgiving terms in their bids and gives them an ultimate out if general contractors do not agree to those terms. General contractors should pay attention to a...more

Brexit: Construction issues for consideration

Summary – the key things you need to know - - The construction industry relies on a steady flow of investment to keep the cash flow wheels turning. Uncertainty about how the mechanics of a Brexit will work and the...more

Preventing Limitation of Liability End-Runs

Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and...more

Vesting and Priorities of Competing Construction Liens

It goes without saying that a construction project involves a plethora of competing interests. There is a lender, a main contractor, subdivision improvers, architects, and many different subcontractors, all of which are...more

FAQ on the Limitations on Subcontracting New Rules

We recently held a live seminar and a webinar on the new Limitations on Subcontracting (“LOS”) rule. We reviewed the questions submitted during the sessions, and noticed that many of the same questions were being asked by...more

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

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