General Contractors

News & Analysis as of

December 2014 - Real Estate FOUNDATION

In this issue - The CERCLA Divisibilty Defense: Back from the Dead? - Springing Recourse for Breach of Solvency and Debt Payment Covenants? Does New York Need Cherryland Legislation? - Mid-Construction...more

Oregon Court Denies HOA’s Effort to Proceed Against Subcontractors for Construction Defect

In Liberty Oaks Homeowner’s Ass’n v. Liberty Oaks, LLC, 2014 Ore. App. LEXIS 1696, the Liberty Oaks Homeowners’ Association (“HOA”) sued the developers of townhomes, alleging that they were responsible for construction...more

Right of Contractor to Stop Work Upheld by Board of Contract Appeals

In an extraordinary decision, the U.S. Civilian Board of Contract Appeals upheld the right of Kiewit-Turner, JV, to stop work and walk off a VA hospital project in Colorado....more

D.C. Circuit Rejects Challenge To Section 503 Regulations Administered by OFCCP

On Friday, December 12, 2014, the D.C. Circuit rejected a challenge by Associated Builders and Contractors, Inc. (“ABC”) to the recent rules promulgated by OFCCP under Section 503 of the Rehabilitation Act protecting...more

A Wolf in Sheep's Clothing is Still a Wolf: The FLSA Regular Rate and Breach of Contract

Recently, I read about a construction contractor in Los Angeles caught in the middle of litigation between its subcontractors and the city, on behalf of the subcontractor’s former employees. According to the employees, the...more

General Contractors Beware of Subordination Clauses

In California, a general contractor can usually rest assured that in the event of nonpayment, it can rely upon the remedy of a mechanics lien, which remedy is, in fact, even a constitutional right....more

Tenth Circuit: Property Damage Surrounding Defective Windows Is an “Occurrence” Because Damage Is Unexpected from Insured’s...

In Cincinnati Insurance Company v. AMSCO Windows, No. 13-4155 (10th Cir. November 26, 2014), Cincinnati insured AMSCO, which manufactures windows for use in homes and sells the windows to distributors. Certain AMSCO windows...more

AIA Construction Contract Issues: An Owner’s Perspective

MANY CONSTRUCTION PROJECTS ARE DOCUMENTED USING AIA FORMS. These forms focus on issues concerning the architect and contractor. It is in the owner’s interest to protect itself by negotiating the key provisions in the...more

General Contractor’s Prospective Waiver of its Lien Rights is Enforceable in California

In an opinion published in September 2014, entitled Moorefield Construction, Inc. v. Intervest Mortgage Investment Company, et al., D065464, the California Court of Appeal held an original contractor can contractually waive...more

Illinois Court Holds Relief Available to a Sub-Subcontractor Under an Unjust Enrichment Theory for Work Requested but Not Paid for...

C. Szabo Contracting, Inc. v. Lorig Construction Co., 2014 IL App (2d) 131328; 2014 Ill. App. LEXIS 699 (Sept. 29, 2014) - In May of 2006, the Illinois State Toll Highway Authority (“Highway Authority”) retained...more

Recent Developments in California Construction Law

Notable 2014 Case Law - Liability for owners, developers, contractors, subcontractors, suppliers and design professionals - This year, California courts decided a variety of cases with important relevance to...more

Florida Supreme Court Limits Application of Statute of Limitations

A decision issued by the Florida Supreme Court earlier this year significantly limits the protection afforded by the statute of limitations to subcontractors and the like that are brought into construction litigation as...more

The Need for Homebuilder Vigilance About Copyrights

Are homebuilders as vigilant as they should be in protecting their intellectual property rights — including the copyrights that qualifying architectural drawings and structures receive automatically as a matter of law, even...more

Bats, Water, Soil, and Bridges- an Engineer’s dream

Want to know how bats may effect your engineering plans? Want to hear about cool new bridges? Read on. Over the past month, I’ve had the pleasure of attending two events hosted by the North Carolina Chapter of the...more

Construction and Engineering Brief: Obtaining Bonds And Collateral Warranties

In a recent case that came before the High Court, the Technology and Construction Court (a specialist court within the English High Court, "TCC") has shown that it will go to great lengths to enforce obligations to deliver...more

Apartment Complexity: Appellate Court Sorts Out Multiple Coverage Claims for Construction of Uninhabitable Residence

In QBE Ins. Corp. v. Adjo Contracting Corp. (N.Y. App. Div. 2d Dep’t Oct. 29, 2014), an intermediate appellate court in New York confronted cross-appeals involving 15 different insurers embroiled in multiple lawsuits,...more

A Cautionary Tale for General Contractors

Construction lenders often go to great lengths to ensure their deeds of trust have priority over mechanic’s liens. Typically, as part of the construction loan process, general contractors are asked to sign documents...more

Saskatchewan Prime Contractor Regulations Coming into Force January 1, 2015

On January 1, 2015, The Occupational Health and Safety (Prime Contractor) Regulations will come into force in Saskatchewan (the Prime Contractor Regulations). If you are doing business in Saskatchewan, you should...more

Construction Case Law Update - November 2014

Personal Injury Liability, Design Standards, Slavin Doctrine, and Certorari Jurisdiction – Certiorari jurisdiction can arise where two parties in the same legal position move for summary judgment under the same theory...more

The Construction Advantage – Issue 11

Welcome to the first Thanksgiving edition of The Construction Advantage! In this issue, we bring you yet another tale of a mechanics lien case and a priority between an engineer and a lender in a failed golf course project....more

California Court Holds Mechanic’s Lien Claimants Entitled to Pre-Judgment Interest of 7 Percent, Not 10 Percent, Against...

Under California Civil Code (CC) Section 3289, a mechanic’s lien claimant may obtain pre-judgment interest against contracting property owners calculated at 10 percent per annum from the date of breach. In Palomar Grading &...more

Time Limit on Filing Certain Construction Lawsuits Extended

A recent Illinois Appellate Court decision extends the time period in which a certain type of legal claim can be made against a general contractor on a construction project. The decision, 15th Place Condominium Association v....more

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

Illinois Supreme Court Agrees to Decide Remedy for Unserved Notices of Violation

What happens when the City doesn’t properly serve a notice of building code violations? In the closing days of its September term, the Illinois Supreme Court agreed to decide that issue in Stone Street Partners, LLC v. City...more

Statutory Limit on Change Orders Bars Contractor Claim in Virginia

A recent Virginia case strictly construing a statutory limit on the amount of contract change orders has raised concerns among contractors doing business with Virginia state and local agencies. In Carnell Construction Corp....more

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