Construction Contracts

News & Analysis as of

Patent Rights in Government Contracts

Patents are often a company’s most important asset. Thus, when a company is contracting with the federal government, that company needs to proceed with caution to avoid loss of patent rights. Government contracts can cover...more

Construction Case Law Update - October 2014 #2

Disputes over a mediation agreement’s validity must be resolved prior to a court ruling on discovery requests regarding matters potentially settled by the agreement. A dispute arose after Jilco, Inc. (“Jilco”) subleased a...more

Enforcing Notice Provisions in Construction Contracts in the United States

Notice provisions are a key part of construction contracts. These provisions typically require a contractor to notify the owner of the project (or an owner-designated representative) when the contractor believes that it is...more

When Your General Contractor Files Bankruptcy

The case is Branch Banking & Trust Co. v. Construction Supervision Services Inc. (In re Construction Supervision Services Inc.), 753 F.3d 124 (4th Cir. 2014). After a general contractor filed bankruptcy, several of its...more

Mechanic’s Lien Reigns Supreme in the Battle of a Project Default? Not for a Waiving General

In what can only be described as a devastating result for a general contractor, the Fourth Appellate District held that a general contractor may prospectively waive the priority of a mechanic’s lien to the owner’s...more

Contractors: Beware the Subordination Clause

Did you know that California is the only state in the country in which mechanics liens are a constitutional right? Tis true. Article XIV of the California Constitution states: Mechanics, persons furnishing...more

Texas Supreme Court Orders 10/14 (Six Petitions Granted)

Because there are no opinions and no grants in the Supreme Court's order list this morning, this is a good opportunity for me to do the promised post on the petitions granted in the October 3, 2014 order list. ...more

Proposed Changes to Pennsylvania Mechanics’ Lien Law Would Provide for Internet-Based Directory to Serve as a Standardized...

Pending House Bill 473 seeks to amend the current lien law by creating a centralized construction notices registry in Pennsylvania known as the State Construction Notices Directory (“Directory”), which would provide owners...more

Mechanics Liens — Smart Tools of Construction Industry Professionals, and Bane of Property Owners

In 1791, Thomas Jefferson and James Madison proposed the first mechanics liens legislation in order to promote development in Washington. The Maryland Assembly (which governed Washington at that time) passed the...more

Pennsylvania Supreme Court Determines Implied Warranty of Habitability Does Not Extend to Subsequent Purchasers

The Pennsylvania Supreme Court is now the latest state court to weigh in on the issue of whether a subsequent purchaser of a previously inhabited residence can recover contract damages from a builder or general contractor for...more

Final Rule Raising Minimum Wage for Federal Contractors

The Secretary of the U.S. Department of Labor (DOL), Thomas Perez, recently issued the final rule raising the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The final rule enacts...more

Required Contract Provisions for Construction Contracts in California

One question I get fairly often when drafting or reviewing construction contracts is what provisions, if any, are required in construction contracts in California. This is, of course, different than what should be included in...more

Construction Case Law Update - October 2014

Applying the Ameris factors, the Middle District of Florida abstained from and dismissed indemnitor’s declaratory judgment action to determine indemnity provision’s (1) scope, (2) duty to defend against third-party...more

Condo Developers Getting Relief From Washington

In an uncharacteristic bipartisan style, the House of Representatives of the U.S. Congress passed H.R. 2600 on September 26, 2013, and almost a year later, on September 19, 2014, the Senate followed by enacting S.2101....more

Louisiana Public Bid Law Update: Two Big Wins in the Louisiana First Circuit for Unsuccessful Bidders Disputing Public Bid Awards

Last month, the Louisiana First Circuit Court of Appeal issued two decisions in favor of unsuccessful bidders on public projects. In Phylway Const., LLC v. Terrebonne Parish Consol. Government, 2013-1589 (La. App. 1...more

Major Step Forward for California Design-Build: SB 785 Signed September 30, 2014

With the enactment of Senate Bill 785, the State of California has taken a major step forward in authorizing state and local agencies to use design-build. Although many California agencies have the ability to use...more

A Recent Reminder of the Sovereign Acts Doctrine

The sovereign acts doctrine provides that the federal government, when sued as a contractor, cannot be held liable for an obstruction to the performance of the particular contract resulting from its public and general acts as...more

Yes, Indeedy. Competitive Bidding Not Required for School District Lease-Leasebacks

Remember when you discovered that the tooth fairy wasn’t real? It was kind of a bummer on one hand learning that it wasn’t a fairy that magically appeared to swap your tooth for cold hard cash, but rather your mom or,...more

The Construction Advantage – Issue 9

In our ninth issue of The Construction Advantage, we provide you with a new case, a new statute and updated OSHA rules and requirements. We hope that this newsletter has been helpful and informative to you so far in 2014....more

2014 Connecticut Legislative Summary - September 2014

The 2014 regular session of the Connecticut General Assembly closed with only a few new laws on the books that will affect the design and construction industry. The summaries below highlight the most significant of these....more

Construction Case Law Update - September #2 2014

FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

Connecticut Court Again Holds That Certificates of Insurance Do Not Confer Rights

A Connecticut Superior Court has further clarified the construction industry whether a certificate of insurance naming a party as an additional insured confers any rights on that party. In Hobbs, Inc. v. Charter Oak Fire...more

Wake County Justice Center- a LEED Silver Project done right!

Yesterday evening, I had the privilege of attending the Triangle USGBC’s “Talk & Walk” at the Wake County Justice Center. The 576,996 square foot Justice Center was completed 6 months early and over 30 million under budget....more

Construction Case Law Update - September 2014

FLORIDA STATE CASES - Forum selection clause in construction contract will not be enforced where third party defendant would be forced to testify in two venues. Forum selection clauses in contracts are generally...more

Connecticut Supreme Court Construes “Active Interference” Exception to “No-Damage-for-Delay” Clause

C&H Electric, Inc. v. Town of Bethel, 312 Conn. 843, 2014 Conn. LEXIS 263 (Aug. 5, 2014) - This dispute arose out of a project to renovate and build an addition at a high school in the Town of Bethel, Connecticut. The...more

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