News & Analysis as of

Subcontractors

New Law on Subcontracting in the Private Sector Is Not Without Problems

by McGuireWoods LLP on

The Democratic Republic of Congo adopted Law No. 17/001 on 8 February 2017, regulating subcontracting in the private sector. It entered into force on 17 March 2017, with a one-year transitional period. In adopting these...more

"On demand" performance bonds: no strings attached?

by White & Case LLP on

A recent Australian case decided that a claim used as a basis for encashing an "on demand" performance security did not need to be authoritatively determined first....more

The Other Shoe Drops: An Update on DOLI Enforcement of Contractor Registration Requirements

by Stinson Leonard Street on

In a move of interest to residential or commercial contractors working in Minnesota, the Minnesota Department of Labor & Industry (DOLI) recently began enforcing a 2012 requirement that all unlicensed contractors register...more

California’s New Public Works Claims Resolution Process

If you’re a public entity or contractor involved in public works construction, you should be aware of a new law that took effect this year establishing a new mandatory claims resolution process for disputes on public works...more

Client Update: The 2017 Changes to the AIA Contract Documents: A Summary of the Relevant Changes to the Owner-Contractor Forms

by Reed Smith on

The American Institute of Architects (AIA) contracts are the most commonly used set of construction contract forms on commercial projects in the United States. In late April 2017, AIA issued its once-in-a-decade updates to...more

Oral construction contracts: RCS Contractors Ltd v. Conway, a costly affair indeed

by Dentons on

Certainty in a construction contract is all the more important when adjudication is envisaged to have to take place under a demanding timetable. The adjudicator has to start with some certainty as to what are the terms of the...more

Proposals are Only as Strong as their Weakest Link: GAO Affirms Non-responsiblity Determination Based on Subcontractor’s Lack of...

by Bass, Berry & Sims PLC on

The GAO recently denied Leidos Innovations Corporation’s protest of a determination that Leidos was ineligible to receive a $272 million award by the U.S. Army despite Leidos having both the highest-rated technical proposal...more

The Importance of a Carefully-Drafted Work-Share Provision - Set-Aside Alert

by PilieroMazza PLLC on

Subcontracts contain a number of important provisions that shape the relationship between a prime contractor and its subcontractor. However, there is one provision that overshadows the rest in terms of its significance to the...more

New West Virginia Contractor Disclosure Effective July 7

by Steptoe & Johnson PLLC on

Beginning on July 7, 2017, contractors performing West Virginia state contracts worth $100,000 or more are required to publicly disclose the names of their owners, subcontractors, and other business entities providing work or...more

House Small Business Committee Approves Legislation Providing For Expedited Partial Payments of Requests for Equitable Adjustment...

by PilieroMazza PLLC on

A common frustration faced by many small business government contractors, particularly in the construction industry, is how often agencies make very costly unilateral change orders during the course of performance. Although a...more

Department of Labor withdraws joint employer guidance

by McAfee & Taft on

A joint employer relationship can arise in circumstances where an individual performs work for two entities that share control over how that individual performs his/her work. Although joint employment relationships are most...more

Small Business Payment For Performance Act Unanimously Leaves Committee – Will SBC Construction Contractors Be Able To Reduce...

Currently pending in the House of Representatives is H.R. 2594, the “Small Business Payment for Performance Act of 2017” (the “Bill”). This Bill unanimously passed the House Committee on Small Business earlier today. While...more

Posting of workers

by DLA Piper on

On 30 May 2017, Law No. 29/2017 concerning the posting of workers in the framework of the provision of services was published in the Official Journal of the Portuguese Republic....more

Safety Agency Applies Federal Law To Bar Employer Safety Violation Citation - Agency’s Application of 5th Circuit Appeals Court...

by Fisher Phillips on

The federal agency that reviews OSHA safety violation cases, also known as the OSH Review Commission, recently adopted the decision of one of its Administrative Law Judges who applied 5th Circuit precedent to reject a safety...more

Avoiding Common Subcontracting Pitfalls

by PilieroMazza PLLC on

Companies often team together to bid on government procurements in order to boost their chances of being awarded contracts and, if awarded the contracts, to provide greater support to the government than they may be able to...more

Your Contract Requires You To Be Named as an Additional Insured: Are You?

by Reed Smith on

Last week, New York joined the ranks of several states that may limit a government contractor’s access to insurance coverage despite being added, as set forth in the contract, as an “additional insured” under a prime or...more

Supreme Court of Wisconsin Holds That Private Subcontractor Is Immune to Property Damage Claims by Adjoining Landowners Because it...

by Pepper Hamilton LLP on

Melchert v. Pro Elec. Contrs., 2017 Wis. Lexis 169 (April 7, 2017) - The Wisconsin Department of Transportation (“DOT”) contracted with Payne & Dolan (“P&D”) as General Contractor on a road improvement project. P&D in turn...more

Indemnitor Owes Indemnity Even Where Indemnitee is Actively Negligent, California Court Holds

Indemnity provisions are one of the most fought over provisions in design and construction contracts. But while parties generally understand the intent behind indemnity provisions — that one party (the “indemnitor”) agrees to...more

Real News - Spring 2017

by DLA Piper on

The use of drones across all sectors is increasing. Accountancy rm, PwC estimates that the emerging global market for business services using drones is valued at over USD 127 billion and the biggest slice of that market is...more

Attention Contractors: The Right to Cure Act may still be alive!

by Nexsen Pruet, PLLC on

Perhaps you forgot about it, or maybe you just gave up on it; regardless, you will be happy to hear that the Right to Cure Act just may be alive. In an Order dismissing Plaintiffs’ claims, entered in the Charleston County...more

Factoring and leading with your chin

by Dentons on

Factoring agreements are very popular with subcontractors and suppliers in the construction industry, assisting cash-flow by providing a line of credit against accounts receivable. However, like any financial product,...more

Third Appellate District Holds Right to Repair Act Precludes Certain Common Law Claims for Damages Caused by Construction Defects

In Gillotti v. Stewart (No. C075611, filed 4/26/17, publication order 5/18/17), the California Court of Appeal for the Third Appellate District held that the Right to Repair Act, Civil Code section 895, et seq. (the “Act”)...more

The Indiana Supreme Court Finds a Non-Delegable Duty of Worksite Safety Created in Form Design-Build Contracts Between the Owner...

by Reminger Co., LPA on

In Indiana, courts have historically found it is acceptable practice for a general contractor to delegate the duty of ensuring the safety of a subcontractor’s employees to the subcontractor, so long as it is clearly set forth...more

Contractor May Receive Indemnity Despite Alleged Active Negligence or Willful Misconduct

by Low, Ball & Lynch on

Oltmans Construction Co. v. Bayside Interiors, Inc. - Court of Appeal, First Appellate District, 10 Cal.App.5th 355 (March 30, 2017) - Civil Code § 2782.05 renders an indemnity provision in a contract void and...more

Subcontractors’ Strongest Protections Don’t Always Apply

Several years ago, Ohio’s legislature passed a law to provide subcontractors and material suppliers with a formidable weapon to protect their payment rights – the Ohio Prompt Payment Act. ORC 4113.62 requires that...more

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