News & Analysis as of

Subcontractors

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

Relationships with Subcontractors Can Create Joint Employment

A recent court case from a Federal Appeals court out of Maryland should cause contractors to re-examine their relationships with subcontractors and their employees. In that case, Salinas v. Commercial Interiors, the employees...more

Employers Beware: Indiana Supreme Court Expands the Scope of the “Duty of Care” Owed to a Subcontractor’s Employees

by Fisher Phillips on

In light of a recent decision from the Indiana Supreme Court, Indiana employers—and construction companies in particular—should review their contracts and subcontracts to determine if they have unwittingly assumed a duty of...more

The Buy American and Hire American Executive Order: What It Means For Supply Chain Management

by Jones Day on

In our December 2016 Commentary on the "Government Contracts Ramifications of the Trump Election" and our January 2017 update, we predicted that the Trump Administration would seek to strengthen domestic preferences in...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

No Negligence? No Causation? No Problem. Arizona Appellate Court Holds General Contractor Need Not Prove Subcontractor’s...

by Pepper Hamilton LLP on

Amberwood Dev., Inc. v. Swann’s Grading, Inc., No. 1 CA-CV 15-0786, 2017 Ariz. App. Unpub. LEXIS 207 (Ct. App. Feb. 23, 2017) - This case arose out of a housing development project, with Amberwood Development Inc....more

Does Your Company Need an Affirmative Action Plan?

by Nexsen Pruet, PLLC on

Executive Order (EO) 11246 prohibits federal contractors and subcontractors from discriminating against employees and applicants on the basis of race, color, religion, sex, sexual orientation, sexual identity, or national...more

Contractors Should Start Preparing for a Possible Shutdown Now

by Holland & Knight LLP on

With less than a week before the federal government’s appropriated funding runs out, confidence in avoiding a potential shutdown is waning. Because of that, contractors should exercise prudence and immediately begin...more

New State Construction Notices Directory: A Valuable Tool for Owners

by Cozen O'Connor on

Effective December 31, 2016, Pennsylvania’s Mechanics’ Lien Law of 1963 (lien law) was amended to allow for an online State Construction Notices Directory (directory) to provide notice to parties involved in projects costing...more

American Institute of Architects Releases 2017 Contract Documents

by Lane Powell PC on

Lane Powell strives to help our clients stay ahead of the curve on all matters concerning construction law. This is a quick note to let you know that the American Institute of Architects (AIA) released its 2017 Construction...more

New Bankruptcy Case Limits Assertion of Post-Bankruptcy Construction Liens

by Saul Ewing LLP on

On March 30, 2017, the United States Court of Appeals for the Third Circuit issued a decision that curtails the rights of suppliers to lien non-debtor third-party property following the bankruptcy filing of a construction...more

The Fourth Circuit’s New Test for Joint Employment Under the FLSA and Why You Should Care

The Fourth Circuit Court of Appeals’ recent articulation of a new test for joint employment under the Fair Labor Standards Act (FLSA) sets a challenging standard for general contractors and others that seek to minimize labor...more

When Are Your Subcontractor's Employees Your Employees?

by Williams Mullen on

In January, the Fourth Circuit Court of Appeals entered its decision in Salinas v. Commercial Interiors, Inc., ruling that a contractor and its subcontractor can be the “joint employers” of the subcontractor’s worker for Fair...more

Money, Dirt and Steel: Spring 2017

by Williams Mullen on

When Are Your Subcontractor's Employees Your Employees? In January, the Fourth Circuit Court of Appeals entered its decision in Salinas v. Commercial Interiors, Inc., ruling that a contractor and its subcontractor can be...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

Insurance Policy Did Not Prevent Association Recovery from Subcontractors for Defective Work

by K&L Gates LLP on

On February 17, the First District Appellate Court issued an opinion regarding the Implied Warranty of Habitability in the case of Sienna Court Condominium Association v. Champion Aluminum Court et al. The opinion involved...more

“To Indemnify, or Not to Indemnify, that is the Question: California Court of Appeal Addresses Active Negligence in Indemnity...

In California, it is well-established that the extent of a party’s obligation under an indemnity agreement is an issue of contractual interpretation, and it is therefore the intent of the parties that should control. What is...more

Lien bonds and statutory trusts: Stuart Olson Dominion Construction Ltd v. Structal Heavy Steel, 2015 SCC 43

by Dentons on

In December 2010, Stuart Olson Dominion Construction Ltd. (Dominion) was hired to act as general contractor to construct a football stadium at the University of Manitoba. Dominion entered into a subcontract with Structal...more

Joint Employer Relationship Between Contractors and Subcontracts Redefined by a Federal Appeals Court

by Best Best & Krieger LLP on

Sweeping changes were made recently by a federal appeals court to the joint employer standard under the Fair Labor Standards Act that make it difficult for a contractor to avoid being considered a joint employer with its...more

Construction retentions trust regime comes into force: What you need to know

by DLA Piper on

As discussed in previous updates, on 31 March 2017 a change to the Construction Contracts Act 2002 will take effect to implement a trust regime that will apply to retentions held under construction contracts. Key things...more

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