General Contractors

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Construction Case Law Update - July 2015 #2

CGL Policies; Declaratory Judgments; Appeal of a Partial Final Judgment – A commercial general liability insurer and its insured sought declaratory relief over the question of insurance coverage and the duty to defend...more

Is the Mechanic’s Lien or Bond Waiver Clause in Your Contract Enforceable in Virginia?

A new Virginia law invalidates any mechanic’s lien or payment bond waiver signed before work has commenced. The Governor recently signed new legislation into law, effective July 1, 2015, that invalidates waivers of...more

“If You See Something, Say Something” Applies to Construction Contract Bidding

In Otis Elevator Co. v. W.G.Yates & Sons Construction Co., 589 Fed. Appx. 953; 2014 U.S. App. LEXIS 20214 (11th Cir. 2014), a subcontractor installed a series of escalators for an airport expansion project and sued the...more

Contractor’s Repeated Material Breach Excuses Subcontractor From Further Performance

The Appellate Division of the Supreme Court of New York in U.W. Marx, Inc. v. Koko Contracting, Inc. affirmed judgment in favor of a subcontractor, holding that the general contractor’s failure to make three successive...more

If You Can't Say Anything Nice: Criticizing Contractors Can Be Costly

Construction projects can turn acrimonious — and bad feelings often survive dispute resolution. But think twice before voicing thoughts or opinions about a fellow project participant. A false statement about another’s...more

Federal Circuit Court Affirms that Federal Claims Court Lacks Jurisdiction Over Claims By Subcontractor

Montano Elec. Contractor v. United States, 2015 U.S. App. LEXIS 5928 (Fed. Cir. Apr. 13, 2015) - The Army Corps of Engineers (“the Corps”) hired a general contractor, who subcontracted certain electrical work to Montano...more

Summary of Revised AAA Construction Industry Rules Effective July 1, 2015

The American Arbitration Association recently revised its Construction Industry Arbitration Rules and Mediation Procedures. The revised Rules, which became effective on July 1, "further align the AAA Construction Rules with...more

Summary of Revised AAA Construction Industry Rules Effective July 1, 2015

The American Arbitration Association recently revised its Construction Industry Arbitration Rules and Mediation Procedures. The revised Rules, which became effective on July 1, "further align the AAA Construction Rules with...more

Top Ten Construction Clauses: Pay-if-Paid and Pay-when-Paid Clauses

Pay-if-paid clauses provide that a general contractor is not required to pay subcontractors unless and until it receives payment from the owner. The ConsensusDocs Standard Agreement 655 provides the following example: Receipt...more

New Jersey Developer Wins on “Occurrence” and “Property Damage”; Appellate Division finds Subcontractors’ Faulty Construction...

The Superior Court of New Jersey, Appellate Division, has issued a very important decision for real estate developers and general contractors whose insurance companies have reserved rights or denied coverage for damage caused...more

Construction Case Law Update - July 2015

Involuntary Dismissal of Counterclaims – In a suit between a developer and general contractor, the trial court erred in dismissing the general contractor’s counterclaims, without a motion by the developer, before the...more

Additional Insureds Beware: A Certificate of Insurance Does Not Guaranty Coverage

This is the first in a 2-part series on the use of certificates of insurance as evidence of liability coverage for contractors on construction projects. The second part of the series will discuss the potential impact of...more

“All-Risks” Insurance Policies Don’t Cover All the Risks

In a recent decision, Ledcor Construction Limited v. Northbridge Indemnity Insurance Company (Ledcor), the Alberta Court of Appeal (Court) gave guidance on the scope of defects exclusions in “all-risks” construction insurance...more

In Overhead and Profit Class Actions, The Third Trade’s No Longer The Charm

When repairs to a damaged home reach a certain level of complexity, they call for supervision by a general contractor, who receives a percentage of the actual repair costs as “general contractor’s overhead and profit” or...more

Looking Backward: West Virginia Retroactively Imposes Coverage for Faulty Workmanship

A notorious moving target in the field of coverage litigation is an insurer’s responsibility under a commercial general liability policy for the policyholder’s faulty workmanship. The key question is usually whether the...more

Nevada Legislature Passes Reform on General Contractor Liability for Unpaid Subcontractor Labor Benefits

The 2015 Nevada Legislature appears to have brought common sense reform to one of the state’s most controversial statutes – NRS 608.150 – which made “original contractors” liable to its subcontractor employees (or labor...more

A Recent Case's Impact on the Determination of Contractor Licensure

A Florida court of appeals recently ruled that a contractor is considered licensed if it is associated with a qualifying agent licensed to perform the contract work on the effective date of the contract. Other courts...more

Construction Bonds and Subguard Insurance

In virtually all public projects (and in many private projects), the owner requires the general contractor to post a performance bond and a payment bond. Recently, in some cases, general contractors have obtained...more

Construction Corner: Design-Bid-Build vs. Construction Manager at Risk Project Delivery Method

In a recent Construction Corner post, we discussed Design-Bid-Build (“DBB”) project delivery. In this post we will compare and contrast Design-Bid-Build and Construction Manager at Risk project delivery methods. As...more

Under Construction - June 2015

Letter from the Editor - Welcome to the summer edition of our Under Construction newsletter. In this issue, we highlight several hot topic items affecting the construction industry such as what happens when the...more

Bonding off a Private Mechanic’s Lien In Kentucky

In my previous post, I discussed the basics of filing a private mechanic’s lien in Kentucky. Today, the subject will turn to the release of a private mechanic’s lien by execution of a bond. Execution of a bond for release of...more

The Different Warranties Covering A Contractor’s Work

A general’s or subcontractor’s job is far from over when it receives final payment on a construction project. Rather, final payment begins a new phase of the project, the warranty phase, which may last years. This is true...more

Construction & Land Use Newsletter - June 2015

In This Issue: - Fairfax County's Plans for the Route 1 Corridor - A Patriotic Partnership: The Construction Industry and the Military - Excerpt from Fairfax County's Plans for the Route 1 Corridor: On May...more

You Can Take This Job and Shove It!

That’s it. - You’ve had it. - They can take their job and shove it! - But can you really tell an owner on a construction project to proverbially shove it where the sun don’t shine?...more

The Common Interest Privilege May Offer More Protection Than You Thought.

Consider for a moment a situation when an Owner and a General Contractor want to exchange confidential communications relating to a potential legal matter. When the Owner and Contractor are not both parties in a suit, what...more

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