Subcontractors

News & Analysis as of

All is Fair in Lovell and Litigation

Most California construction attorneys know, or should know, that you need to “prove” you’re a licensed contractor in a construction case. And, by “prove,” that means more than simply alleging in a pleading that you are...more

Cybersecurity for Contractors and Design Professionals

Data breaches and the resulting havoc for companies that must deal with them are all over the news. While most construction industry businesses do not handle large amounts of consumer data, you cannot simply ignore...more

Pennsylvania Supreme Court Clarifies Applicability of Contractor and Subcontractor Payment Act

Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...more

Construction Alert: Don't Overlook the Importance of Additional Insured Endorsements

Whether you are giving one to someone else or asking for one, you need to use additional insured endorsements (AIE) that give you as much protection as possible and that meet the promises you have made in your contracts. A...more

Supreme Court of Pennsylvania Holds Contractor and Subcontractor Payment Act (“CASPA”) Inapplicable to Public Works Projects

Clipper Pipe & Service, Inc. v. The Ohio Cas. Ins. Co., 2015 Pa. LEXIS 1275 (PA June 15, 2015) - The Supreme Court of Pennsylvania held that CASPA, 73 P.S. §§501-516, “does not apply to a construction project where...more

Changes to Florida's Construction Defect Notice Statute

Florida Governor Rick Scott signed a new bill that changes Florida's construction defect notice statute, effective October 1, 2015. Changes to the Florida statute include: (I) an amendment to section 558.001, revising...more

Head Contractors Beware: New Retention Money Requirements in New South Wales

The Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015 (Retention Money Regulation) commenced on 1 May 2015 and brought into effect important requirements for head...more

Fifth Circuit Affirms Interpretation Of Two Agreements And Denial Of Motion To Compel Arbitration

The Fifth Circuit addressed the question of whether a subcontract between the parties requires arbitration, a question that turned on the interpretation of the term “contract documents” in the subcontract. TRC Environmental...more

Nevada Legislature Passes Reform on General Contractor Liability for Unpaid Subcontractor Labor Benefits

The 2015 Nevada Legislature appears to have brought common sense reform to one of the state’s most controversial statutes – NRS 608.150 – which made “original contractors” liable to its subcontractor employees (or labor...more

Contractor and Subcontractor Payment Act Not Applicable to Public Works Project

In a decision issued last week in Clipper Pipe & Service, Inc. v. Ohio Casualty Insurance Company, the Pennsylvania Supreme Court concluded that the Contractor and Subcontractor Payment Act, 73 P.S §§ 501-516 (CASPA) does not...more

A Recent Case's Impact on the Determination of Contractor Licensure

A Florida court of appeals recently ruled that a contractor is considered licensed if it is associated with a qualifying agent licensed to perform the contract work on the effective date of the contract. Other courts...more

New Human Trafficking Rules: Broad Scope, Uncertain Application

Contractors already have begun to notice the inclusion of the new human trafficking FAR contract clause, required to be incorporated into all new federal government contracts. The rule imposes affirmative duties on federal...more

What Happens When the Construction Contract is Not Signed and the Work is Underway?

Although it seems self-evident that participants to a construction project would not want to commence work without first obtaining signatures on a written contract, it happens all too frequently, even on big projects. At...more

IT Project Disputes Management - Managing the Cloudy Skies

In this issue: - Overview of Presentation - Prevention is better than cure - Fix problems in the design phase - Early diagnosis and treatment of problems - So what do you do? - Areas of major...more

Disgorgement Penalty for Unlicensed Contractors in California

California has some of the toughest penalties in the country for unlicensed contractors. An unlicensed contractor is not just a contractor without a license, but could also be a contractor who is not correctly licensed or a...more

OFCCP Files Suit Against Federal Subcontractor Staffing Agency for Alleged Discrimination and Harassment

In a complaint filed on June 17, 2015, OFCCP alleges that a staffing agency that supplies laborers to work for federal prime construction contractors at the prime contractors’ construction sites, permitted the prime...more

Proposed Regulations and Guidance Issued for Executive Order on Fair Pay and Safe Workplaces

Although the regulations are not final and may change, government contractors should take steps now to prepare for the anticipated final regulations under the Executive Order. On May 28, the Federal Acquisition...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

Arizona State Legislature Expands Prompt Payment to Design Professionals on Public Works Projects

Arizona law has long protected the rights of contractors, subcontractors and suppliers to prompt payment. However, all such protections have not extended to design professionals. For example, in 2013, the Arizona Court of...more

Letters of the Law: 'L' is for Lien

Contractors, subcontractors, suppliers and consultants cite “not getting paid” as one of the biggest challenges to operating in the construction industry in Qatar. Understandably, companies are starting to look for...more

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

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

Proposed FAR Changes To Implement SBA Small Business Subcontracting Rules

DOD, GSA, and NASA have proposed a number of changes to the FAR to implement changes made by the Small Business Administration in 2013 regarding small business subcontracting goals and plans. While the proposed FAR changes...more

Under Construction - June 2015

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

California Court Rejects Alleged Joint Employers' "It Wasn't Me" Defense to Worker Misclassification Claims

Notwithstanding—and perhaps because of—the emergence of the so-called "sharing economy" and its proliferation of disruptive new business models, as well as calls to re-examine the traditional and familiar employee versus...more

Federal Contractors Face Disqualification From Future Work

Federal contractors, including businesses and universities performing on federally funded projects, have new reporting obligations regarding their labor and safety practices. On May 28, 2015, the Department of Labor published...more

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