News & Analysis as of

Construction Industry

Construction One-Minute Read: Allowance or Contingency?

While both relatively simple concepts, allowances and contingencies are often confused with one another. Conflating the two can lead to pitfalls. ...more

Construction Liens Filed by Suppliers in New Jersey After Contractor’s Filing of Bankruptcy Petition Are Barred by the Automatic...

by Pepper Hamilton LLP on

In re: Linear Electric Co., Inc., No. 16-1477, 2017 U.S. App. Lexis 5527 (3d Cir., March 30, 2017) - This case concerns whether suppliers, Cooper Electrical Supply Co. and Samson Electrical Supply Co. (“Suppliers”),...more

Massachusetts Appellate Court Holds That No-Damages-for-Delay Clause Does Not Bar Claim for Schedule Compression and Affirms Award...

by Pepper Hamilton LLP on

Central Ceilings, Inc. v. Suffolk Constr. Co., Inc., 2017 Mass App. Lexis 36 (March 29, 2017). The Massachusetts State College Building Authority contracted with Suffolk Construction Company (“Suffolk”) to serve as the...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

Third Appellate District Holds Right to Repair Act Precludes Certain Common Law Claims for Damages Caused by Construction Defects

In Gillotti v. Stewart (No. C075611, filed 4/26/17, publication order 5/18/17), the California Court of Appeal for the Third Appellate District held that the Right to Repair Act, Civil Code section 895, et seq. (the “Act”)...more

Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent

by Snell & Wilmer on

Colorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue...more

Oregon OSHA Issues Proposed Changes to Regulations Regarding Occupational Exposure to Beryllium in General Industry, Construction,...

by Stoel Rives LLP on

In response to the federal Occupational Safety and Health Administration’s adoption of revised beryllium exposure standards, Oregon OSHA has proposed to adopt the federal OSHA final rules, with minor modifications that would...more

Keeping Your Place in Line: Title Insurance Protections for Construction Loan Disbursements

Most construction loans contemplate multiple advances or disbursements of funds at various stages of the construction project. The construction loan agreement will set forth the conditions that the borrower must satisfy to...more

SB 496 – New California Law Affecting Indemnification Duties for Design Professionals

SB 496, approved by Governor Jerry Brown on April 28, 2017, amends California Civil Code Section 2782.8 to apply to all design service contracts entered into by design professionals on or after January 1, 2018. The amendment...more

Federal Court in Alaska Holds Insurer Liable Under E&O Policy to Indemnify and Defend Construction Manager for Claims by...

by Pepper Hamilton LLP on

KICC –Alcan Gen. v. Crum & Forster Specialty Ins. Co., 2017 U.S. Dist. LEXIS 37560 (March 16, 2017) - A Contractor/Construction Manager, KICC-Alcan General (“KICC”), entered into a subcontract with an MEP subcontractor,...more

Colorado State Legislature Finally Passes Construction Defects Reform Legislation

In a dramatic and seemingly overnight change of course, the Colorado House of Representatives unanimously approved House Bill 1279 on April 24, 2017. Days later, on May 4, 2017, HB 1279 passed unanimously in the Colorado...more

Deadline Approaching for D.C. Comprehensive Plan Amendment Proposals

by Ballard Spahr LLP on

The deadline is approaching for individuals and groups to submit proposed amendments to the District of Columbia's Comprehensive Plan, which guides future growth and development in the District. May 26 is the last day of the...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

Maryland Senate Fails To Consider Bill Passed By House To Preclude Limitations On Construction Defect Claims

by Baker Donelson on

The Maryland Senate failed to vote on SB 670, which would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring claims for building defect issues. The...more

President Trump’s “Buy American, Hire American” Executive Order and the Construction Industry

“We will have two simple rules when it comes to this massive rebuilding effort, buy American and hire American” – President Donald Trump On April 18, 2017, President Trump signed Executive Order No. 13788 implementing his...more

Financing Infrastructure: Spotlight On African Debt

by Hogan Lovells on

It is a truth universally acknowledged that there is direct correlation between the development of Africa’s infrastructure and the continent’s economic progress. The recent infrastructure investment boom and financing of...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

AIA Releases 2017 Construction and Design Agreements

by Dickinson Wright on

At the end of last month, the American Institute of Architects (“AIA”) released several revised documents including the primary agreements between the owner and contractor and the owner and architect. Many of the revisions...more

Looking for an Excuse? Here Are Four Excusable Delays for Construction Projects

by Faegre Baker Daniels on

No commercial construction project is immune to delays. Some delays to the critical path of a project may be outside the control of the parties. If this is the case, the delay may be considered “excusable,” meaning the...more

Negotiating Construction Agreements with Japanese Contractors for Domestic Projects

A foreign owner contracting with a Japanese construction company to build facilities in Japan, whether a hotel, a manufacturing facility, a process plant or otherwise, faces a number of challenges....more

Construction Alert: "When Is It Cool Not to Pay? Fridge Dispute at Texas Supreme Court Addresses Prior Material Breach Doctrine"

by Porter Hedges LLP on

The Texas Supreme Court recently issued an opinion that could impact the next construction project where multiple parties complain about who breached (and who breached first) and whether the parties must continue performing...more

Colorado Appellate Court Holds that Commercial Entity that Owns a Senior Living Facility Is a “Residential Property Owner” Within...

by Pepper Hamilton LLP on

Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co., 2017 Colo. App. Lexis 261 (March 9, 2017) - R.G. Brinkmann Company, as general contractor, was retained by Sunrise Development, Inc., a major national developer,...more

Alleged Violations of Florida Building Code Not Subject to Class Treatment

by Carlton Fields on

Two couples who own homes in central Florida attempted to bring a class action against a homebuilder, stemming from alleged violations of Florida’s building code. Section 553.84, Florida Statutes, provides for such a private...more

Subcontractors’ Strongest Protections Don’t Always Apply

Several years ago, Ohio’s legislature passed a law to provide subcontractors and material suppliers with a formidable weapon to protect their payment rights – the Ohio Prompt Payment Act. ORC 4113.62 requires that...more

Fifth Circuit Holds That Spearin-like Provision of Louisiana Civil Code Bars Negligent Failure to Warn Claim

by Pepper Hamilton LLP on

LaShip, LLC v. Hayward Baker, Inc., 2017 U.S. App. LEXIS 3694 (5th Cir. Mar. 1, 2017) - Beginning in 2007, LaShip, LLC (“LaShip”) undertook the construction of a large shipbuilding facility in Houma, Louisiana (the...more

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