Construction Contracts

News & Analysis as of

Construction Contract Payment Terms: Timing is Everything

In 2011 you will probably recall receiving a plethora of information about the amendments to the Construction Act (the “Act”) particularly the resulting “new” payment regime. There was a flurry of activity leading up to the...more

U.S. District Court in Kentucky Holds that Contractor Which Proposed Design Solution During Construction Might Be Liable for...

American Towers LLC v. BPI, Inc., 2014 U.S. Dist. LEXIS 106724 (E.D. Ky. Aug. 4, 2014) - American Towers LLC (“American Towers”), which operates wireless and broadcast communications towers, undertook a project to...more

NSW Supreme Court Confirms Definition of a 'Construction Contract' Under the Building and Construction Industry Security of...

The recent NSW Supreme Court case of Seabreeze Manly v Toposu, (Seabreeze Case), is a useful reminder to the building and construction industry as to what 'arrangements' will give rise to a 'construction contract' under the...more

Obrascon Huarte Lain SA v Her Majesty's Attorney General for Gibraltar: A rare look at the FIDIC form of contract

Introduction - Mr Justice Akenhead's judgment in the case of Obrascon Huarte Lain SA v Her Majesty's Attorney General for Gibraltar[2014] EWHC 1028 (TCC) provides judicial guidance on the interpretation of certain key...more

Effective Planning and Management in Construction Project Scheduling

The successful execution of a construction program in terms of meeting time and cost objectives has always been dependent on effective planning. The increasing complexity and cost of today's construction programs highlight...more

Public Offering Statement Disclosure Limits Developer's Liability

A New Jersey judge earlier this year dismissed a construction defect complaint by a condominium association against the developer and contractor, finding that the lawsuit was filed outside the state’s six-year statute of...more

Sacramento’s Commercial Construction Market Heats Up

One reason I changed law firms from the Bay Area to Sacramento was I felt that Sacramento’s construction market, which was one of the areas hardest hit in California following the Real Estate Bubble Burst, was poised for a...more

Summary of California’s Prompt Payment Laws

The California legislature has enacted a comprehensive series of prompt payment statutes that are designed to ensure the prompt payment of progress payments and retention payments to downstream contractors by imposing harsh...more

Did the 4th Circuit “Tarnish” Sustainable Construction in the CBF Case?

Christopher Hill, LEED AP discusses the ramifications of the 4th Circuit Court of Appeals' remand of the Chesapeake Bay Foundation "Parallam" case at Construction Law Musings....more

Is the Spearin Doctrine Still a Contractor’s Shield if the Contractor Followed the Plans and Specifications?

United States v. Spearin, 248 U.S. 132, 39 S.Ct. 59 (1918) is almost 100 years old, and it is still one of the most oft-cited cases in a construction lawyer’s playbook. In numerous contested cases, Spearin has given...more

Arizona Contractors Confront Cardinal Change

The Cardinal Change Doctrine - The “cardinal change doctrine” is a legal theory pursuant to which a contractor who is presented excessive, cumulative or otherwise material contract change orders has the right to...more

Drafting Contracts to Minimize or Avoid Claims

Many claims that arise in design and construction may be mitigated or avoided as a result of prudent contract drafting at the outset of the project. This article provides practical tips for drafting contracts to minimize or...more

Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’...

The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at...more

Business Risk Exclusions in CGL Policies Produce a Patchwork of Decisions

On July 23 and 24, 2014, respectively, intermediate appellate courts from South Carolina and Massachusetts released opinions upholding the application of the “your work” exclusion in a commercial general liability policy...more

Pennsylvania Supreme Court Rules Only Original Purchasers May Recover Damages for Breach of the Builder’s Implied Warranty of...

The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers. In Conway v. The Cutler Group, Inc., the Court reversed an...more

Pennsylvania Supreme Court Holds Contractor May Recover in Quantum Meruit Where Home Improvement Contract Does Not Satisfy...

Homeowners Raymond and Donna Mantia contracted Shafer Electric & Construction (“Shafer”) to build a two-car garage addition onto their house. Shafer’s proposal was extremely detailed as to the work to be completed. Despite...more

The Construction Advantage – Issue 8

In our eighth issue of The Construction Advantage, we provide you with three new cases, with two of them coming from the Maine courts. We hope that this newsletter has been helpful and informative to you so far in 2014....more

Confirmation That the Limitation Period for 'Building Actions' is 10 Years, Not Six

The recent Victorian Court of Appeal decision of Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 (Brirek Case) has settled the appropriate time period, at least in Victoria, in which a...more

IRS Comments on its PTC Start of Construction Guidance

On August 20, the American Wind Energy Association (AWEA) held a webinar to discuss Internal Revenue Service (IRS) Notice 2014-46, which clarified the rules for wind projects to be grandfathered for production tax credit...more

New retainage law goes into effect November 6

Massachusetts enacted a new retainage law that will require owners, prime contractors and subcontractors to pay retainage according to the law’s terms on a construction contract if... ...more

Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd – more claims against building practitioners?

On 6 August 2014, the Victorian Court of Appeal handed its decision in Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165. The decision clarified the operation of limitation periods in...more

Fifth Circuit Holding Breathes Life Back Into the Contractual Liability Exclusion

Liability insurance policies typically exclude coverage for obligations arising out of the insured’s “assumption of liability in a contract or agreement.” Earlier this year, the Texas Supreme Court took a narrow view of this...more

New DC Construction Codes Take Effect

Already on the forefront of green building innovation, the District of Columbia has adopted a new set of construction codes that, most notably, includes advanced energy and green construction regulations. On March 26, 2014,...more

IRS Releases New Guidance on Beginning of Construction - Aug 2014

On August 8, 2014, the Internal Revenue Service (“IRS”) issued Notice 2014-46 (the “Notice”), which clarified certain aspects of the beginning of construction requirement that must be satisfied for taxpayers to qualify for...more

IRS Issues Additional Guidance with Respect to 2013 Beginning of Construction Rules for Wind and Other Renewable Projects

The Internal Revenue Service (Service) issued Notice 2014-46 (Notice) on August 8, 2014, to provide further guidance on meeting the beginning of construction requirements for wind and other qualified facilities (biomass,...more

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