Construction Contracts

News & Analysis as of

Foundation: July 2015 • Vol. II, Issue 2

Warranty/Guaranty Provisions in Construction Contracts - The most confusion I have seen in the discussion of construction topics concerns the concepts of “warranty” and “guaranty.” This article will address the...more

Heads up! Inflation Adjustments To Acquisition Thresholds Are Just Around The Corner

On July 2, 2015, the FAR Council issued a Final Rule that amends the FAR, effective October 1, 2015, to implement inflation-based adjustments to certain acquisition-related monetary thresholds. 80 Fed. Reg. 38293. The...more

The Fifth Letter and Expansion of the Brazilian Corruption Scandal into the Private Sector

I recently received a review copy of the book The Fifth Letter by fellow University of Michigan grad Vivian L. Carpenter. It is a rollicking good read which touches on areas of constitutional law, inalienable rights in the...more

The Heat of the Moment: When Inking That Big Deal, Make Sure Dispute Resolution Provisions Are on Your Checklist

The strength of the Seattle area economy has been attracting both national and international attention. The bird that is synonymous with economic activity — the construction crane — is visible from downtown to South Lake...more

Real News - Summer 2015

Welcome to the summer edition of Real News, DLA Piper’s quarterly guide to key developments in English and Welsh real estate law. In this edition:- - Jon Gaskell looks at recent changes made to the CDM...more

Presidio Parkway Opens in San Francisco

The long-awaited Presidio Parkway opened for the first time to Bay Area motorists on July 12th, ahead of schedule and to local and national praises. The $1.1 billion Presidio Parkway replaces Doyle Drive – an outdated...more

This Week In Securities Litigation

The SEC filed three actions following-up on its settled proceeding against Oppenheimer for selling millions of shares of unregistered penny stocks. Each individual settled with the agency. In addition, the Commission brought...more

Letters of the Law: 'O' is for Omission

Most contractors would not argue with the scope of their work being increased (provided they are to be paid for the increase) but they might not be so pleased if the scope is reduced and the employer seeks to pay them less....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

Contractor Barred from Using the “Total Cost” or “Modified Total Cost” Approach to Establish Delay Claim

In a recent ruling, Hill York Service Corporation v. Critchfield Mechanical, Inc., the U.S. District Court for the Southern District of Florida held that a contractor may not establish damages for delay under either the...more

Perspectives on Insurance Recovery

Welcome to the latest edition of Pillsbury’s Perspectives on Insurance Recovery. As this 2015 edition of Perspectives demonstrates, our team is working on the most challenging issues—from cyber-insurance and complex claims...more

Court Calls Lease-Leaseback Project What it is: A Design-Bid-Build Project

First there was “Prince.” Then there was “The Artist Formerly Known As Prince.” Then there was “The Artist Formerly Known As Prince Because he Changed His Name to a Symbol, But Then Realized That No One Could...more

Louis Berger International Pays $17 Million Penalty for FCPA Violation

On July 17, 2015, Louis Berger International, Inc., a New Jersey-based construction management company, entered into a deferred prosecution agreement (DPA) with the Department of Justice under which it agreed to pay a $17.1...more

P3s: Managing Risks and Rewards

Overview - Successful P3s—Public-Private Partnerships—can be blessings for state and local governments searching for new ways to finance many types of critical “infrastructure”—roads, schools, prisons, and more—and...more

AAA Revises Construction Industry Arbitration Rules and Mediation Procedures

The American Arbitration Association (AAA) has revised its Construction Industry Arbitration Rules and Mediation Procedures (Rules), effective July 1, 2015. Although some changes are relatively modest, others expand the...more

Significant Changes to AAA's Construction Arbitration Rules Effective July 1, 2015

The American Arbitration Association (AAA) recently issued several significant revisions to its Construction Industry Arbitration Rules, which became effective July 1, 2015. The revised rules apply to construction arbitration...more

Should You Cut The Delegation Clause From Your Arbitration Agreement?

A recent report showed that less than half of arbitration agreements in the consumer financial arena include delegation clauses in their arbitration agreements. Two recent decisions from state high courts suggest that is a...more

ICSID Tribunal Orders Claimants to Disclose Details of Third-Party Funder

In what appears to be the first decision of its kind, an ICSID tribunal in the case of Muhammet Çap & Sehil Insaat Endustri ve Ticaret Ltd. Sti. v. Turkmenistan has ordered the claimants in the proceedings to disclose the...more

Letters of the Law: 'N' is for Novation

Party A contracts with Party B. Party C is substituted for Party B. The contract is now between Party A and Party C. In other words Party C has stepped into the position of Party B. Party C has assumed Party B's rights...more

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...more

Construction Licensing – Substantial Compliance – Settlements and Suspension of License

Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. - Court of Appeal, Second Appellate District (May 18, 2015) - Business and Professions Code Section 7031 precludes a contractor from maintaining any action...more

Top Ten Construction Clauses: Change Orders and Change Directives

Construction contracts typically provide for changes in the scope of work through change orders, construction change directives and orders for minor changes. AIA Document A201-2007 and the ConsensusDocs Standard Agreement...more

US District Court in New York Holds Owner’s Interference Bars Claim that Contractor Breached By Abandoning Project

NYU Hosps. Ctr. v. HRH Constr. LLC, 2015 U.S. Dist. LEXIS 31967 (S.D.N.Y. Mar. 12, 2015) - NYU Hospitals Center (“NYU”) hired HRH Construction LLC (“HRH”) to renovate NYU’s radiology center. HRH entered into...more

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