Subcontractors

News & Analysis as of

An update on payment issues on UK construction projects

Our Autumn 2016 update includes news on the Prompt Payment Code and the Construction Supply Chain Payment Charter as well as some guidance on the use of payment schedules....more

Court rejects contractor’s mechanic’s lien because of ‘intent’

The Illinois Court of Appeals’ recent decision in AUI Construction Group, LLC v. Vaessen highlights the need for careful planning in structuring development agreements, construction contracts, and the use of an easement as...more

Don’t Let Forced Labor and Bribery in Your Supply Chain Spoil the Holidays

The holiday retail season is an ideal time to check that forced labor and bribery—two top and interconnected supply-chain threats—do not undermine the success of your critical sales period. Not long ago, many in the...more

Illinois Appellate Court Ruling Has Far-Reaching Implications for Construction Participants in Wind Energy Projects

A landmark opinion issued by the Second District Illinois Appellate Court on November 9, 2016, contains vital information for construction industry participants involved in Illinois wind energy projects. In AUI Construction...more

Illinois Appellate Court Ruling Provides (Another) Reason to Double-Check Your Payment Clauses

A recent ruling out of the First District Illinois Appellate Court makes one thing clear: contractors and subcontractors should pay close attention to payment clauses on all contract forms. In Beal Bank Nevada v. Northshore...more

DOL Issues New Paid Sick Leave Rule for Federal Contractors and Subcontractors

Beginning January 1, 2017, federal contractors and subcontractors may have to start providing up to 56 hours - the equivalent of seven working days - of paid sick leave per year to their employees who are working on federal...more

Construction Contract Clauses That May or May Not Have Your Vote – Part 3

Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The third in a multi-part series, here are some other important...more

Reviewing Third Party Vendor Service Contracts

Managing third party vendor relationships has always been an important function in banks. More recently it has become a hot topic for state and federal financial bank regulators. The increasing complexity of what vendors are...more

Leaning In – Pennsylvania Refining the Mechanic’s Lien Law

Pennsylvania has continued to refine its mechanic’s lien law in recent years, and next year will bring the most sweeping changes ever for owners and contractors that work on larger projects....more

Proposed IR&D DFARS rule would competitively punish technology innovators

Understanding that it will punish innovative contractors for engaging in independent research and development (IR&D) and taking on risks that would otherwise be borne by the government, on November 4, 2016, the US Department...more

Joint / Related / Common Employers: Are You at Risk

In recent years, a number of cases have emerged in both Canada and the United States discussing new implications for companies deemed to be joint and related employers. Cases both from the United States and across Canada will...more

Are you a joint employer?

Are you an employer who uses temporary employees, staffing agencies or independent contractors? Use of such contingent or contract workers is not unusual and may be necessary for your operations. If you are in that...more

Construction Industry Scheme - taxing our landlords and tenants

The Construction Industry Scheme (‘CIS’) requires contractors to withhold tax from payments to subcontractors in relation to certain construction work. It is easy to assume that CIS only applies to mainstream contractors, but...more

Recent Dispute Between Teaming Partners Teaches Lessons about Drafting Protest Provisions in Teaming Agreements

A Florida federal court has ruled that a teaming agreement for a government contract did not compel an unsuccessful prime contractor to protest a lost award, despite the demand by its subcontractor teaming partner. TYR...more

Construction One-Minute Read: Litigation Challenges With Collecting Attorneys’ Fees

It is common knowledge among construction litigators that in order for a contractor to recover attorneys’ fees from a subcontractor, the subcontract must specifically state that attorneys’ fees are recoverable. However, in...more

New HIPAA Guidance Sheds Light on Existing Rules

Recently, regulators issued new guidance related to the Health Insurance Portability and Accountability Act (“HIPAA”), Pub.L. 104–191, 110 Stat. 1936, enacted August 21, 1996. Specifically, on October 6, 2016, the Department...more

Portion of Fair Pay and Safe Workplaces Executive Order Blocked

On Tuesday of this week, a federal judge in Texas granted a nationwide preliminary injunction blocking the portions of President Obama's "Fair Pay and Safe Workplaces" Executive Order. That order, signed in 2014 and...more

Sierra Pacific v. Bradbury goes unchallenged: Colorado’s six-year statute of repose begins when a subcontractor’s scope of work...

It’s official: the October 20, 2016 deadline to petition for certiorari to the Colorado Court of Appeals on its decision in Sierra Pacific Industries, Inc. v. Bradbury has passed, so it appears that decision will...more

Worker’s Compensation Exclusivity Rule Gets “Trumped” by Indemnity Provision

Sorry, I couldn’t help myself with the title. The next case, Aluma Systems Concrete Construction of California v. Nibbi Bros., Inc., California Court of Appeals for the First District, Case No. A145734 (August 16, 2016),...more

FAQ about Federal Acquisition Regulation (FAR) Amendment re: Non-Retaliation for Employee Disclosure of Compensation Information

Why Should I Care About this Amendment? The federal government is mandating another disclosure to your employees, and adding new language to your government contracts....more

Illinois Appellate Court Affirms a Declaratory Judgment in Favor of the Insurer Where the Underlying Suit Did Not Allege an...

In Westfield Ins. Co. v. West Van Buren, LLC, the Appellate Court of Illinois, affirmed the trial court’s decision holding that the developer, West Van Buren, LLC (“Van Buren”), was not entitled to defense and indemnification...more

Appellate Court Notes

Supreme Court Advance Release Opinions: SC19516 - Doe v. Boy Scouts of America Corp. SC19516 Concurrence - Doe v. Boy Scouts of America Corp. SC19516 Concurrence - Doe v. Boy Scouts of America...more

Department Of Defense Issues Final Cyber Incident Reporting Rule

On October 4, 2016, the Department of Defense (“DoD”) published a final rule implementing mandatory cyber incident reporting requirements for DoD contractors and subcontractors. The rule, which is effective as of November 3,...more

District Court Refuses To Bind Surety To Subcontract Arbitration Clause

An engineering company was hired to perform work in connection with construction and renovation of the South African Embassy, and subcontracted for sheet metal work with a third party. The subcontract contained an arbitration...more

Take Note of This Law Regarding Small Business Offerors Under Multiple Award Contracts

The National Defense Authorization Act (“NDAA”) for Fiscal Year 2016, which went into effect on November 25, 2015, contains some requirements regarding multiple award contracts that you might not know about. The 2016 NDAA...more

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