News & Analysis as of

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

DOL Issues Final Rule on Enforcement of Contractors' Minimum Wage Executive Order

On October 1, 2014, the Department of Labor (DOL) issued its "Final Rule" on enforcement of Executive Order No.13658: Minimum Wage for Contractors, which was signed by President Obama on February 12, 2014.The Executive Order...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

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

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

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

The Legal and Financial Consequences of Moving to a More Contractor Friendly No-Damage-For-Delay Cause

According to the New York City Building Congress, Manhattan is poised to add roughly nine million square feet of new office space to its inventory between 2013 and 2015. If realized, this would be the highest volume of new...more

Mechanics Lien Subordination: Illinois Further Limits Construction Lenders’ Ability To Ensure Priority Against Mechanics Liens

On July 16, 2014, Illinois enacted Public Act 98-764 (Senate Bill 3023) (“SB 3023”), which amends the Illinois Mechanics Lien Act (770 ILCS 60/ et seq.) (the “Act”) to prohibit subordination of mechanics liens on Illinois...more

Calling a Letter a “Reservation of Rights” Does Not Necessarily Make It So

Many insurers are in the habit of sending perfunctory “reservation of rights” letters to their insureds throughout the lifetime of a claim. The reason they do so is not a very well-guarded secret in the insurance industry. An...more

NSW Supreme Court Confirms Definition of a 'Construction Contract' Under the Building and Construction Industry Security of...

The recent NSW Supreme Court case of Seabreeze Manly v Toposu, (Seabreeze Case), is a useful reminder to the building and construction industry as to what 'arrangements' will give rise to a 'construction contract' under the...more

Summary of California’s Prompt Payment Laws

The California legislature has enacted a comprehensive series of prompt payment statutes that are designed to ensure the prompt payment of progress payments and retention payments to downstream contractors by imposing harsh...more

Drafting Contracts to Minimize or Avoid Claims

Many claims that arise in design and construction may be mitigated or avoided as a result of prudent contract drafting at the outset of the project. This article provides practical tips for drafting contracts to minimize or...more

Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’...

The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at...more

The Construction Advantage – Issue 8

In our eighth issue of The Construction Advantage, we provide you with three new cases, with two of them coming from the Maine courts. We hope that this newsletter has been helpful and informative to you so far in 2014....more

New retainage law goes into effect November 6

Massachusetts enacted a new retainage law that will require owners, prime contractors and subcontractors to pay retainage according to the law’s terms on a construction contract if... ...more

New Federal Health Care Facility Regulations Could Mean More Construction Work

On April 16, 2014, the Centers for Medicare & Medicaid Services (CMS), an agency of the U.S. Department of Health and Human Services, published proposed rules that would amend the fire safety standards for hospitals,...more

Summary of Mississippi’s New Construction Lien Law

Mississippi recently enacted a new construction lien law. This article addresses certain key provisions of the new law - codified at Mississippi Code Annotated § 85-7-401 (Rev. 2014) - that apply to commercial projects. ...more

Biggest Risk of Corruption in The Construction Industry - The Global Picture 2014

The construction industry is big business. A recent study has predicted that global construction output will increase by more than 70%, to US$15 trillion per year worldwide, by 2025. The dominant sources of this growth will...more

Getting Paid On Time: The Prompt Pay Act

Contractors in Maryland have available statutory remedies for non-payment. The Maryland Code contains a Prompt Pay Act (the “Act”). Md. Code Ann., Real Prop. § 9-301 et seq. (Repl. Vol. 2010). The Act entitles a contractor...more

Are You Secretly Running a Construction Business? State Law Says You Might Be!

Late last month, I spoke at a regional meeting of the Wireless Internet Service Providers Association, and many of the WISPs in attendance were surprised to learn that not only were they in the Internet service business, but...more

Winning Formula for Construction Litigation – Lessons Learned from a Recent Trial Win [Video]

Most construction contracts for major projects have arbitration provisions or jury trial waivers. As a result, construction litigators do not often get to present high-value complex cases to juries. Pepper’s Construction Law...more

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