News & Analysis as of

Construction Contracts Subcontractors

General Contractors Now Liable In Private Construction For Wage And Fringe Benefit Liabilities Of Subcontractors

by Weintraub Tobin on

On October 14, 2017, California Governor Jerry Brown signed AB 1701. This law imposes liability on general contractors for wage and fringe benefit liabilities of its subcontractors. This law applies to all contracts entered...more

California Building Owners and Contractors: Act before January 1, 2018, to Minimize Risks of Non-Paying Subcontractors

by Allen Matkins on

This past weekend Governor Brown signed AB 1701, a bill that requires direct contractors to pay any wages, fringe benefits, or other benefit payments or contributions owed by a defaulting subcontractor, plus interest. This...more

Construction One-Minute Read: California Officials Put Additional Pressure on General Contractors to Prevent Wage Theft

General contractors’ top priorities on a construction project are completing the work on time, completing the work within budget, and guarding against future construction defect claims. New and pending laws in California,...more

Mechanic's Liens 101: Ways to Avoid Them

by Faegre Baker Daniels on

A mechanic’s lien is a powerful tool for many construction participants on private projects and a major source of risk for owners. A mechanic’s lien is an involuntary lien and a statutory right that protects contractors,...more

No implied obligation to work with due diligence and expedition

by White & Case LLP on

The Singapore Court of Appeal has recently held that there was no implied term of due diligence and expedition in a construction contract. This case aligns the Singaporean approach with that of the English courts....more

Arbitration Award Ruling That, Because of Cultural Differences, a Local Afghan Subcontractor Is Not Bound by the F.A.R. Provisions...

by Pepper Hamilton LLP on

Aspic Eng’g & Constr. Co. v. ECC Centcom Constructors, LLC, No. 17-cv-00224-YGR, 2017 U.S. Dist. LEXIS 111767, at *10-12 (N.D. Cal. July 18, 2017) - This matter came before the Court on a motion to vacate a final...more

Defence & Indemnity - August 2017: V. SURETY AND BOND ISSUES: Manitoba Housing and Renewal Corp. v. Able Eavestroughing Ltd., 2017...

by Field Law on

V. SURETY AND BOND ISSUES - A. Manitoba Court of Queen’s Bench finds CRA entitled to priority to “earned but unpaid” contract funds held by obligee (over the surety who had paid out labour and material payment bond claims...more

Ontario's Construction Lien Act reform Modernization of old tools to secure payment

by Dentons on

On Wednesday May 31, 2017, Bill 142 An Act to Amend the Construction Lien Act (Bill 142) was introduced in the Legislative Assembly of Ontario. The changes incorporate the recommendations of a broad range of stakeholders...more

Supreme Court of Wyoming Strictly Interprets a Conditional Payment Provision to Trigger Payment Only After GC and All of its Subs...

by Pepper Hamilton LLP on

P&N Invs. v. Frontier Mall Assocs., 2017 Wyo. LEXIS 62 (Wyo. 2017) - This payment dispute arose over conditional language in a lease agreement between a mall and a restaurant operator. P&N Investments (“P&N”) leased space...more

In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for...

Earlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895 et seq.) which applies to construction defects in newly constructed residential properties including single-family...more

A primer for contractors: Getting paid -- fact or fiction?

by Hellmuth & Johnson PLLC on

As a contractor, getting paid for work completed isn't always as easy as collecting onsite or sending an invoice. Hellmuth & Johnson construction law attorney Blake Nelson answers fact or fiction when it comes to collections,...more

Construction and Infrastructure Update - July 2017

California’s New Public Works Claims Resolution Process - If you’re a public entity or contractor involved in public works construction, you should be aware of a new law that took effect this year establishing a new...more

"On demand" performance bonds: no strings attached?

by White & Case LLP on

A recent Australian case decided that a claim used as a basis for encashing an "on demand" performance security did not need to be authoritatively determined first....more

Client Update: The 2017 Changes to the AIA Contract Documents: A Summary of the Relevant Changes to the Owner-Contractor Forms

by Reed Smith on

The American Institute of Architects (AIA) contracts are the most commonly used set of construction contract forms on commercial projects in the United States. In late April 2017, AIA issued its once-in-a-decade updates to...more

Oral construction contracts: RCS Contractors Ltd v. Conway, a costly affair indeed

by Dentons on

Certainty in a construction contract is all the more important when adjudication is envisaged to have to take place under a demanding timetable. The adjudicator has to start with some certainty as to what are the terms of the...more

Small Business Payment For Performance Act Unanimously Leaves Committee – Will SBC Construction Contractors Be Able To Reduce...

Currently pending in the House of Representatives is H.R. 2594, the “Small Business Payment for Performance Act of 2017” (the “Bill”). This Bill unanimously passed the House Committee on Small Business earlier today. While...more

Indemnitor Owes Indemnity Even Where Indemnitee is Actively Negligent, California Court Holds

Indemnity provisions are one of the most fought over provisions in design and construction contracts. But while parties generally understand the intent behind indemnity provisions — that one party (the “indemnitor”) agrees to...more

Factoring and leading with your chin

by Dentons on

Factoring agreements are very popular with subcontractors and suppliers in the construction industry, assisting cash-flow by providing a line of credit against accounts receivable. However, like any financial product,...more

The Indiana Supreme Court Finds a Non-Delegable Duty of Worksite Safety Created in Form Design-Build Contracts Between the Owner...

by Reminger Co., LPA on

In Indiana, courts have historically found it is acceptable practice for a general contractor to delegate the duty of ensuring the safety of a subcontractor’s employees to the subcontractor, so long as it is clearly set forth...more

Contractor May Receive Indemnity Despite Alleged Active Negligence or Willful Misconduct

by Low, Ball & Lynch on

Oltmans Construction Co. v. Bayside Interiors, Inc. - Court of Appeal, First Appellate District, 10 Cal.App.5th 355 (March 30, 2017) - Civil Code § 2782.05 renders an indemnity provision in a contract void and...more

New State Construction Notices Directory: A Valuable Tool for Owners

by Cozen O'Connor on

Effective December 31, 2016, Pennsylvania’s Mechanics’ Lien Law of 1963 (lien law) was amended to allow for an online State Construction Notices Directory (directory) to provide notice to parties involved in projects costing...more

American Institute of Architects Releases 2017 Contract Documents

by Lane Powell PC on

Lane Powell strives to help our clients stay ahead of the curve on all matters concerning construction law. This is a quick note to let you know that the American Institute of Architects (AIA) released its 2017 Construction...more

Construction retentions trust regime comes into force: What you need to know

by DLA Piper on

As discussed in previous updates, on 31 March 2017 a change to the Construction Contracts Act 2002 will take effect to implement a trust regime that will apply to retentions held under construction contracts. Key things...more

Indecent Exposure: New Decision Confirms Subcontractors Liability To CD Damages Is Expansive

How broad is a “broad-form” indemnity provision in a construction contract? A recent decision by the Arizona Court of Appeals has held such a provision allows a developer great latitude in recovering monies paid for...more

Security of Payment and the rise of the contractual reference date

by Dentons on

The recent Supreme Court of NSW decision by Ball J in Fairfield City Council v Abergeldie Contractors Pty Ltd1 (Abergeldie), provides another demonstration of how issues with reference dates2 can provide potent grounds for...more

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