Contractors

News & Analysis as of

Enforcing Notice Provisions in Construction Contracts in the United States

Notice provisions are a key part of construction contracts. These provisions typically require a contractor to notify the owner of the project (or an owner-designated representative) when the contractor believes that it is...more

High Court Finds No Duty of Care From Builder to Owners Corporation

The High Court has held that a builder of a serviced apartment complex does not owe a duty of care in negligence for financial loss arising from defects in common property to an owner's corporation (Brookfield...more

California District Court Errs in Dismissing Insurer’s Equitable Reimbursement Claim without Leave to Amend

In the contentious matter of Travelers Indemnity Company of Connecticut, et al. v. Centex Homes, et al., 2014 U.S. Dist. LEXIS 115598 (E.D. Cal. 2014), the Eastern District of California recently reconsidered its July 30,...more

Another Potential Option for Disappointed Bidders in LPTA Procurements

In today’s contracting atmosphere, government agencies are increasingly relying on procurements conducted on a lowest-priced, technically-acceptable (“LPTA”) basis. It is not uncommon in such competitions for the winning...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

Insurance Recovery Law -- Oct 2014

Lack of Direct Contractual Relationship Doesn’t Doom Coverage - Why it matters: The companies involved in a workplace accident are additional insureds pursuant to a sub-subcontractor’s policy and the insurer...more

Fail to Pay Wages in D.C. and Get Sued With Some of Your Closest Friends (and Contractors)

If you are a D.C. employer, temporary staffing agency, contractor or subcontractor, you have yet another wage and hour law to contend with: The Wage Theft Prevention Amendment Act of 2014. Among other things, the law...more

Developer May Not Extinguish Contractor’s Liens by Foreclosing on Its Own Mortgage, Florida Court Holds

A Florida appellate court recently rejected a real estate developer’s creative effort to shed its property of contractor’s liens. The court applied the venerable principal of mortgage law that a borrower may not extinguish...more

Construction Defect Claims Tackled By Lakewood

The impact of construction defect lawsuits on condominium development in Colorado has been a hot topic recently. Colorado law treats residential construction differently than non-residential construction. This increases the...more

New Law Puts California Businesses On The Hook For Wage And Workers’ Compensation Claims By Temporary Workers Employed By Staffing...

A new law exposes California businesses to potential liability for claims by temporary workers. On September 28, 2014, Governor Brown signed into law AB 1897, which created California Labor Code § 2810.3. The new law requires...more

California Enacts AB 1897 Which Means Greater Liability For Employers Who Use Labor Contractors

The new law targets businesses that obtain or are provided “workers to perform labor within its usual course of business from a labor contractor.” The statute’s definition of “labor contractor” excludes bona fide nonprofits,...more

September 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are the crescendo of cases finding against FedEx Ground’s classification of drivers as independent contractors. On the heels of last month’s decision by the U.S. Court of Appeals for the...more

Cannonball! CGL Policy Does Not Cover Pool Contractor for Subcontractor’s Negligence

In Standard Contractors, Inc. v. National Trust Ins. Co., Civil Action No.:7:14-cv-66-HL, the U.S. District Court for the Middle District of Georgia recently granted a commercial general liability insurer’s motion to dismiss...more

New York City Expands Living Wage Law For City Contractors

On September 30, 2014, New York City Mayor Bill de Blasio signed Executive Order No. 7, “Living Wage For City Economic Development Projects,” which raises the city’s “living wage” (i.e., minimum wage) for certain employers...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

Louisiana Public Bid Law Update: Two Big Wins in the Louisiana First Circuit for Unsuccessful Bidders Disputing Public Bid Awards

Last month, the Louisiana First Circuit Court of Appeal issued two decisions in favor of unsuccessful bidders on public projects. In Phylway Const., LLC v. Terrebonne Parish Consol. Government, 2013-1589 (La. App. 1...more

Client Q&A: Jim Hutcherson, Chief Legal Officer/VP Human Resources, Bahnson, Inc. An EMCOR Company

Bahnson is one of the largest specialty engineering, manufacturing and mechanical contracting firms in the United States specializing in ultra-low freezers and environmental chambers. They provide infrastructure and...more

Subcontractors Can Still Perfect Mechanic’s Liens After Prime Contractors File Bankruptcy

One of the most common and effective ways for a subcontractor to secure a payment claim is to file a lien. Assuming any applicable, pre-lien notice requirements are satisfied, an unpaid subcontractor can lien a private...more

Subcontractor Claims: What Can You Do Once Your General Contractor Files Bankruptcy?

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) – After a general contractor filed bankruptcy, several of its...more

Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By...

Wyman v. Ayer Properties, LLC, 469 Mass. 64, 2014 Mass. LEXIS 524 (July 10, 2014) - The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of...more

Governor Brown Signs Bill Making Companies Liable for Employment Violations of Independent Labor Contractor Companies

This weekend, California Governor Jerry Brown signed Assembly Bill 1897. This bill creates new Labor Code section 2810.3, which applies to all but a very limited number of companies with 25 or more employees (i.e., the...more

Thumbs Up/ Thumbs Down, Still FCRA

Does your business use a contractor to provide in-home services to your customers? If so, you probably want the contractor to conduct background checks on its employees. You want the contractor to screen out people who pose...more

Yes, Indeedy. Competitive Bidding Not Required for School District Lease-Leasebacks

Remember when you discovered that the tooth fairy wasn’t real? It was kind of a bummer on one hand learning that it wasn’t a fairy that magically appeared to swap your tooth for cold hard cash, but rather your mom or,...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

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