Construction Contracts Subcontractors

News & Analysis as of

“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

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

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

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

Project In(Site): Legal Developments Impacting Construction & Government Contract Industries

Welcome to the inaugural issue of Project In(Site), Seyfarth’s Construction and Government Contracts practice groups’ publication focusing on decisions or other items of interest for construction and government contract...more

Negligent Misrepresentation Standard Shifts in Contractor’s Favor with Pennsylvania Appellate Ruling

Contractors and subcontractors who are aggrieved by erroneous information on construction documents may have an easier time proving an architect or other design professional made a negligent misrepresentation that harmed them...more

Court of Appeal Opens Pandora’s Box on Definition of “Contractor” for Forum Selection Clauses

In Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc. (“Vita Planning”), the First Appellate District held California’s Code of Civil Procedure section 410.42 (“Section 410.42”) which prohibits an...more

Attorneys Fees Under California’s Prompt Payment Statutes. Contractor’s “Win” Fails the Sniff Test

This past month, the California Court of Appeals for the Third District, in  James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., Case No. C072169 (August 27, 2015), handed down a decision in a construction...more

Construction & Engineering Alert - September 2015

Interpreting the payment provisions in construction contracts: clarification and guidance provided by the TCC To be effective, an application for payment needs to be free from ambiguity. It should state the sum...more

The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage,...more

Construction and Engineering Toolkit: Insuring Existing Buildings in Which and Next to Which Construction Work is to Take Place

This construction guide covers: -JCT contracts in real estate development -Minimum energy standards for letting buildings -Construction work adjacent to existing structures -Insuring the existing...more

What are the three most important risk-shifting provisions contractors and subcontractors should be concerned about?

“No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering...more

Construction & Engineering Toolkit: The Construction Industry Tax Deduction Scheme (CIS) - August 2015

In This Issue: The Construction Industry Tax Deduction Scheme (CIS) The Construction Industry Scheme (or CIS, as it is more commonly known) is a tax deduction scheme. It concerns construction work and...more

Is the Mechanic’s Lien or Bond Waiver Clause in Your Contract Enforceable in Virginia?

A new Virginia law invalidates any mechanic’s lien or payment bond waiver signed before work has commenced. The Governor recently signed new legislation into law, effective July 1, 2015, that invalidates waivers of...more

“If You See Something, Say Something” Applies to Construction Contract Bidding

In Otis Elevator Co. v. W.G.Yates & Sons Construction Co., 589 Fed. Appx. 953; 2014 U.S. App. LEXIS 20214 (11th Cir. 2014), a subcontractor installed a series of escalators for an airport expansion project and sued the...more

Contractor’s Repeated Material Breach Excuses Subcontractor From Further Performance

The Appellate Division of the Supreme Court of New York in U.W. Marx, Inc. v. Koko Contracting, Inc. affirmed judgment in favor of a subcontractor, holding that the general contractor’s failure to make three successive...more

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...more

Construction Licensing – Substantial Compliance – Settlements and Suspension of License

Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. - Court of Appeal, Second Appellate District (May 18, 2015) - Business and Professions Code Section 7031 precludes a contractor from maintaining any action...more

Pennsylvania Supreme Court Clarifies Applicability of Contractor and Subcontractor Payment Act

Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...more

Contractor and Subcontractor Payment Act Not Applicable to Public Works Project

In a decision issued last week in Clipper Pipe & Service, Inc. v. Ohio Casualty Insurance Company, the Pennsylvania Supreme Court concluded that the Contractor and Subcontractor Payment Act, 73 P.S §§ 501-516 (CASPA) does not...more

A Recent Case's Impact on the Determination of Contractor Licensure

A Florida court of appeals recently ruled that a contractor is considered licensed if it is associated with a qualifying agent licensed to perform the contract work on the effective date of the contract. Other courts...more

What Happens When the Construction Contract is Not Signed and the Work is Underway?

Although it seems self-evident that participants to a construction project would not want to commence work without first obtaining signatures on a written contract, it happens all too frequently, even on big projects. At...more

Disgorgement Penalty for Unlicensed Contractors in California

California has some of the toughest penalties in the country for unlicensed contractors. An unlicensed contractor is not just a contractor without a license, but could also be a contractor who is not correctly licensed or a...more

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