News & Analysis as of

Payment Bonds

Arizona Lien, Payment Bond, and Stop Notice Summary Guidelines

by Jaburg Wilk on

Preliminary Lien Notices - “Prelims” should always be given (usually necessary for perfecting lien, bond and stop notice claims) Send within twenty (20) days of first day materials/labor furnished (“20-day...more

2017 and the West Virginia Legislature - The Year of the Employer

The 2017 regular session of the West Virginia Legislature saw several changes in laws relevant to employers. Changes of interest to employers include the West Virginia Safer Workplace Act, Second Chance for Employment Act,...more

Thinking About Improving Your Louisiana Facility? Follow These Steps or Risk Unlimited Lien Liability Under Louisiana’s Private...

by Liskow & Lewis on

If a subcontractor or supplier on a Louisiana construction project is not paid in full, it can file a lien against the owner’s property and sue the owner for payment even though it did not contract with the owner and even if...more

Federal Court in Alabama Rules that 1999 Amendment to the Miller Act Does Not Preclude Arbitration of Underlying Claims

by Pepper Hamilton LLP on

United States v. Int’l Fid. Ins. Co., No. 16-0472-WS-C, 2017 U.S. Dist. LEXIS 16791 (S.D. Ala. Feb. 7, 2017) - This action arose out of a payment dispute between Bay South Limited, Inc. (“Bay South”) and Stephens...more

(US) Payment and Performance Bonds vs Completion Bonds. What’s Best for Your Project?

by Reed Smith on

Several types of bonds exist in the development world. So, which type of bond is best for your project? A payment and performance bond is a combination instrument. It’s first a payment bond that guarantees that the...more

Builders' lien trusts in a bankruptcy - Iona Contractors Ltd v Guarantee Company of North America, 2015 ABCA 240

by Dentons on

In 2009, the Calgary Airport Authority (CAA) entered into a construction agreement with Iona Contractors Ltd. for Iona to improve CAA’s north airfield. By October 2010, the work was substantially complete; however CAA...more

Federal Court in Oklahoma Rules that Bond Issued on a Sovereign Tribal Construction Project is Not a Miller Act Bond Even Though...

by Pepper Hamilton LLP on

United States ex rel. J.A. Manning Constr. Co. v. Bronze Oak, 2017 U.S. Dist. LEXIS 6054 (N.D. Okla. Jan. 17, 2017) - In May 2014 the Cherokee Nation issued a bid notice for bridge and roadway construction in Mayes...more

Coming Down the Pipeline: Mitigating the Payment Risk in Oil and Gas Construction Through Lien Claims

by Pepper Hamilton LLP on

Since 2015, the oil and gas market has experienced significant distress. Recent reports have tracked at least 114 North American oil and gas producers and 16 midstream companies that have filed for bankruptcy since the...more

Fraud and Performance Securities

by White & Case LLP on

Performance securities are an everyday feature of construction and engineering projects. It is increasingly common to see calls on performance securities challenged on the basis of "fraud". Two recent cases from the English...more

Under Construction - December 2016

by Snell & Wilmer on

Welcome to the winter 2016 edition of our Under Construction newsletter. We hope your year has been good to your family, your company and you as we wrap up these remaining few weeks of 2016. A recent hot topic with...more

Another Year, Another Set of Laws: What California Employers Should Know

by Buchalter on

In keeping with California’s reputation of being an employee-friendly state, Governor Brown has enacted a number of laws, most of which go into effect on January 1, 2017 (unless specified otherwise below), that place...more

Leaning In – Pennsylvania Refining the Mechanic’s Lien Law

Pennsylvania has continued to refine its mechanic’s lien law in recent years, and next year will bring the most sweeping changes ever for owners and contractors that work on larger projects....more

Appellate Panel forces Developer to Pay Up for Lost Terrace

The Appellate Division, First Department decision in DDG Warren LLC v Assouline Ritz 1, LLC 2016 NY Slip Op 02926 adds another brick in the wall of Real Property Actions and Proceedings Law (“RPAPL 881”) cases requiring...more

Construction Bond Basics

There are three types of bonds that afford financial protection in connection with a construction project: payment bonds, Cranesperformance bonds, and bid bonds. Below is a primer on the differences between these bonds and...more

Changes Loom for Public Works Projects and Payment Bond Claims in Pending Connecticut Legislation

A recently proposed bill to reduce the retainage amount for certain public work contracts to five percent and to allow a claimant to recover reasonable attorney’s fees and costs from a payment bond surety that fails to timely...more

Why Is California’s Derivative Suit Statute Stuck In 1977?

by Allen Matkins on

California Corporations Code Section 800 governs derivative suits brought by both domestic and foreign corporations. The statute provides a modicum of protection to defendants by establishing a procedure by which either the...more

Miller Time: Where to File a Miller Act Suit Arising on an Overseas Project?

Subcontractors filing Miller Act lawsuits in the U.S. must generally do so in the federal district court where the contract from which the dispute arose was “performed and executed.” 40 USC §§ 3131-3134 However, on...more

New Georgia Statute on Bad Faith Patent Cases May Discourage Both Weak and Strong Cases from Being Brought in Georgia

Plaintiff Walter Farmer (“Farmer”) initiated suit in September 2014 asserting infringement of claim 1 of his U.S. Patent No. 7,362,007 (the “’007 Patent”), issued April 22, 2008, and covering uninterruptable power supply...more

Federal District Court in California Holds that Subcontract Provision Binding Subcontractor to Result of Dispute Resolution under...

by Pepper Hamilton LLP on

DVBE Trucking and Construction Co., Inc. v. McCarthy Building Companies, Inc., 2015 U.S. Dist. LEXIS 90052 (N.D. Cal. July 10, 2015) - This payment dispute case arises out of a Veterans Affairs (“VA”) construction...more

Barbarians at the (marble)gate?

by DLA Piper on

Restructurings are all about alternatives. It is one thing for a creditor to hold an instrument that entitles it to payment of $X on Y date. But if the debtor does not have the cash to satisfy the obligation when due, some...more

A Brief Look At Common Construction Loan Credit Enhancements

by Poyner Spruill LLP on

As the competition for construction loan projects remains at unprecedented levels in much of the country, lenders are frequently being asked to waive, modify or re-visit their standard construction loan credit enhancement...more

Construction Bonds and Subguard Insurance

by Snell & Wilmer on

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

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

by Snell & Wilmer on

Arizona has long protected the rights of subcontractors and material suppliers to seek recovery from the payment bond surety on public bonded projects. Arizona’s Little Miller Act, A.R.S. § 34-223, provides that claimants...more

Under Construction - June 2015

by Snell & Wilmer on

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

No Bond for You: Patentee Not Entitled to Bond or Preliminary Injunction While Case Stayed Pending IPR

by Orrick - NorCal IP Group on

Order Granting Motion to Stay, Security People, Inc. v. Ojmar US, LLC, 14-cv-04968 (Judge Haywood Gilliam Jr.) - A recent opinion analyzes what relief, if any, a patentee is entitled to when its District Court case is...more

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