Contractors

News & Analysis as of

Construction and Infrastructure Update, August 2016

Is it the Dawning of the Age of Strict Products Liability for California Contractors? Strict liability products liability - whereby manufacturers and distributors of a defective product can be found liable to a consumer...more

The Public-Private Partnership as a New Tool for Infrastructure Development in Argentina

The Federal Executive Branch (known by the Spanish acronym, PEN) of the Argentine government recently submitted to the Argentine Congress a bill seeking approval of a new Public-Private Partnership (PPP) framework. This...more

DOE Clarifies Whistleblower Protections in Proposed Rule Revision

Department of Energy contractors and subcontractors may be subject to additional civil penalties. The US Department of Energy (DOE) recently published proposed revisions to its procedural rules for nuclear activities in...more

Standard is Not Always Fair - Six Questions Owners Should Answer Before Entering a Construction Contract

Construction documents, whether for a new building project or for a build out of tenant improvements, can be quite involved and perhaps a little daunting to an owner presented with “standard” American Institute of Architects...more

Top 14 Most Common Scheduling Mistakes by Contractors

Many delay, disruption, and loss of productivity claims are lost or substantially reduced in value because mistakes, errors and carelessness are reflected in the original schedule and plan of operations. The original schedule...more

Contractor Payment Rights on Public Projects affected by PA Supreme Court Decision

Contractors doing work on publicly-owned projects in Pennsylvania may find it more difficult to recover statutory penalties and attorneys’ fees if the owner withholds funds in bad faith. Pennsylvania’s Procurement Code, which...more

Are Your Services at Risk of Being Subject to North Carolina's New Sales and Use Tax?

The North Carolina General Assembly recently enacted a significant change to the state's sales and use tax that may require you to collect and remit additional tax if you are a service provider. Effective March 1, 2016, the...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Cómo los desarrolladores inmobiliarios del sur de Florida están reduciendo el riesgo de litigios

En los días previos a la Gran Recesión de 2008, las propiedades en todo el sur de Florida se compraban solamente para ser revendidas posteriormente con una ganancia. Este “intercambio” de propiedades culminó en un mercado...more

Preventing Limitation of Liability End-Runs

Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and...more

Did You Really Accept That Bid? – How Contractors Can Avoid Post-Acceptance Bid Disputes Over Contract Terms

When California general contractors submit bids to an owner, can they force their subcontractors to honor their bids? Can they recover damages if the subcontractor later refuses to do so? While the general rule in...more

Alert to Contractors – California Court of Appeals (2d App. Dist.) Rules Subcontractor Price in Proposal Containing Material...

Flintco Pacific, Inc. v. TEC Management Consultants, Inc., 2016 Cal. App. LEXIS 594 (Cal. App. 2d Dist. June 21, 2016) - There was an important California decision published on July 19, 2016 (decided June 21, 2016)...more

How to Balance Lender and Contractor Interests on Alternative Energy Construction Projects

Lenders who finance wind and solar farms often require the EPC contractor to consent to the developer’s assignment of the EPC Contract to the lender to secure the developer’s obligations under the loan documents. Such...more

Minnesota Rewrites Construction Rules for Prompt Payment and Retainage

Minnesota has modified its prompt payment and retainage statute (Minn. Stat. 337.10). These revisions mean that many owners, contractors and subcontractors will have to revise the payment provisions of their construction...more

See You In Court! - July/August 2016

Out of the blue, Nancy Newshound, longtime reporter for the Nutmeg Bugle called Mr. Superintendent. “I understand that a student hacked the district’s system and changed a bunch of grades,” she stated. “What can you tell me...more

California Public Works Contractors Will Be Required to Submit Payroll Records Electronically Starting August 1

The California Department of Industrial Relations (DIR) announced this week that the requirement for public works contractors and subcontractors to submit certified payroll records (CPRs) electronically using the DIR’s...more

New York City Expands Law Governing Displaced Building Service Workers

Mayor Bill de Blasio recently signed a bill amending the New York City Displaced Building Service Workers Protection Act (“the Displaced Workers Act” or “the Act”), first enacted by the City Council in 2002. As originally...more

Class Rep Can Opt Out of Arbitration for All (And Other Recent State Court Anomalies)

Continuing last week’s theme of “States Gone Wild,” here are three more oddball summer decisions from state supreme courts. All of them find interesting paths around federal case law (IMHO). Georgia Says Class Complaint...more

How South Florida Real Estate Developers Are Reducing Litigation Risk

Leading up to the Great Recession of 2008, properties throughout South Florida were being bought only to be subsequently resold at a profit.  This “flipping” of properties culminated in an unsustainably-inflated real estate...more

Colorado Supreme Court to Rule on Yet Another Key Construction Defects Issue

On July 5, 2016, the Colorado Supreme Court announced it will consider the construction defects case of Forest City Stapleton, Inc., et al. v. Rogers. In this case the Colorado Court of Appeals, for the first time, imposed...more

New Qatar Public Procurement Law

Last week the State of Qatar implemented a new public procurement law. The new law further aligns Qatar's public procurement laws with international best practice and should streamline public procurement in Qatar....more

Can a MAC Awardee Protest Another Contractor on the Same IDIQ?

While traditionally a bid protest involves a losing offeror challenging the award of a contract to another offeror, occasionally winning offerors on a multiple award contract (MAC) have sought to challenge the government’s...more

Texas District Court Rejects Rail Contractor’s Delay and Prompt Payment Claims and Awards Owner More Than $3 Million

Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016) - The contractor contracted with owner to install 65 miles of railroad track, for a price of...more

Contractual Waiver of Subrogation Applied to Owner’s Non-Work Property

After an insurer pays for a covered loss by an owner under a property policy the insurer generally has the right, whether under the common law, statute or the policy itself, to seek recovery of the payment from the...more

Alberta Court Releases Game-Changing Decision on Certificate of Substantial Performance, Liens

In Chandos Construction Ltd. v. Twin Peaks Construction Ltd. (Chandos Construction), the Court of Queen’s Bench of Alberta (Court) held that once the certificate of substantial performance (Certificate) is issued and major...more

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