General Contractors

News & Analysis as of

New Jersey Supreme Court Affirms General Contractor’s Insurance Coverage for Consequential Damages Caused by a Subcontractor’s...

In an important recent decision, New Jersey joined a growing number of states holding that Insurance Services Office’s (ISO) 1986 comprehensive general liability (CGL) policy extends coverage to a property developer faced...more

Title Insurance Treatment of Mechanic’s Liens

The “Homeowner Amendments” to Ohio Mechanic’s Lien law significantly limits the rights of subcontractors and suppliers to file mechanic’s liens against a homeowner’s property. These apply if the owner has paid the builder in...more

Promissory Estoppel and Public Works Bid Disputes in California. Sooo You’re Telling Me There’s a Chance!

Sometimes we hear what we want to hear (or just ignore what the other person is saying). Sometimes this can lead to broken hearts. And, at other times . . . to empty pocketbooks . . ....more

New Jersey Supreme Court Holds CGL Policies Cover Developer/General Contractor for Damage Caused by Subcontractor’s Faulty...

The New Jersey Supreme Court recently considered whether damage caused by a subcontractor’s faulty workmanship constitutes property damage caused by an occurrence under a developer/general contractor’s commercial general...more

Separation Panes: Emerging Litigation Over Window Sealant

Relatively few people in the commercial construction industry are kept up at night by polyisobutylene (PIB) — the synthetic rubber sealant commonly used to provide a long term and durable moisture barrier for insulated glass...more

Court Dismisses Case Filed Under the Defend Trade Secrets Act

Earlier this year, we notified you about the passage of the Defend Trade Secrets Act of 2016 (DTSA) and how it affects employers. On August 8, 2016, a U. S. District Judge in the Southern District of Florida dismissed one of...more

New Jersey high court follows nationwide majority on CGL coverage for general contractor

On August 4, 2016, the New Jersey Supreme Court affirmed an intermediate court's ruling that where a subcontractor's defective work causes physical damage to other, nondefective parts of a general contractor’s project, it...more

Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract

In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions. The general contractor said that its fire sprinkler subcontractor was...more

New Jersey Supreme Court Gives Supreme Win to Policyholders

Yesterday, the Supreme Court of New Jersey unanimously affirmed the Appellate Division’s holding that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” and an “occurrence” under...more

California Court Limits Recovery for General Contractors Relying on Subcontractor Bids

The court’s decision allows subcontractors to place unforgiving terms in their bids and gives them an ultimate out if general contractors do not agree to those terms. General contractors should pay attention to a...more

Public Works Slowdown Following Implementation of the New Italian Public Procurement Code

The Italian Government definitively approved Legislative Decree no. 50 in April this year, implementing Directives 2014/23/EU, 2014/24/EU and 2014/25/EU of the European Parliament and European Council. The revised legislation...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

New, Relaxed Regulations Make Drone Use on Construction Projects Easier

The Federal Aviation Administration (FAA) recently introduced relaxed regulations concerning the use of drones for commercial purposes. The new regulations could have a significant impact on drone usage in the construction...more

Latest Developments in Arbitration for the Construction Law Practitioner

G. T. Leach Builders V. Sapphire V.P.: Non-Signatories’ Right to Compel Arbitration; Waiver of Right to Arbitrate - By far, the most recent, significant arbitration development for construction law practitioners was the...more

Changes to the resolution of domestic building disputes in Victoria

The Building Legislation Amendment (Consumer Protection) Act 2016 (BLA Act) will come into operation on 1 July 2017 changing the way domestic building disputes are handled under the Domestic Building Contracts Act 1995 (DBC...more

Betterment on Construction Projects, part 2 (more cowbell) (law note)

Another question about betterment, and about A/E insurance policies: I am confused on why the A/E even carries error and omission insurance. I must re-read one of the policies. And if betterment protects the designer,...more

The "Lien-Ability" of Field Change Directives Under Typical Construction Lien Laws?

Consider this scenario taken from an actual project dispute: The contractor has entered into an agreement with the owner for a project of any size. During the course of the project, the owner directs the contractor to perform...more

Federal Court in Maryland Denies Summary Judgment, Holding That Subcontract Provision Placing Responsibility for Property Damage...

Turner Constr. Co. v. BFPE Int’l, Inc., No. JKB-15-368, 2016 U.S. Dist. LEXIS 39161 (D. Md. Mar. 25, 2016) - The University of Maryland Medical Center (“UMMC”) entered into a contract (the “Prime Contract”) with Turner...more

Construction Alert: "Texas Supreme Court Opinion Impacts General Contractor's Statutory Indemnity Rights Against Manufacturers of...

The Texas Supreme Court recently issued an important decision regarding the ability of general contractors to seek indemnity from manufacturers of defective products. In Centerpoint Builders GP, LLC v. Trussway, Ltd., the...more

Texas Supreme Court Narrows the Ability of General Contractors to Seek Chapter 82 Indemnity for Product Claims

On June 17, the Texas Supreme Court further clarified the definition of the word "seller" in Chapter 82 of the Texas Civil Practice and Remedies Code (known as the Texas Products Liability Act), which was intended to provide...more

Insurer’s Potential Exposure to Fees and Costs When Prosecuting Indemnity Action under Assignment from Insured

Hearn Pacific Corporation v. Second Generation Roofing, Inc. - Court of Appeal, First Appellate District (May 2, 2016) - It is not uncommon in construction defect and some other cases for an insurer of the general...more

Construction Defect Debate to be Heard by Colorado Supreme Court

The construction defects case of Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al. has garnered national attention since the Colorado Court of Appeals' decision in May 2015,...more

How to Circumvent “No Damages for Delay” Clauses

Most commercial construction contracts contain a “No Damage For Delay” Clause and most contractors mistakenly believe they are Kings X for any potential claims related to delay caused by an owner or original contractor. ...more

Subcontractor’s Failure to Strictly Comply With Notice Provision Costs $200,000

Whether you are an owner, contractor, subcontractor or supplier, you will want to read the rest of this post since it illustrates precisely what all those attorneys have been telling you for years: “Please, please, please...more

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