News & Analysis as of

Subcontractors Construction Contracts

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

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

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

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

Indecent Exposure: New Decision Confirms Subcontractors Liability To CD Damages Is Expansive

How broad is a “broad-form” indemnity provision in a construction contract? A recent decision by the Arizona Court of Appeals has held such a provision allows a developer great latitude in recovering monies paid for...more

Security of Payment and the rise of the contractual reference date

by Dentons on

The recent Supreme Court of NSW decision by Ball J in Fairfield City Council v Abergeldie Contractors Pty Ltd1 (Abergeldie), provides another demonstration of how issues with reference dates2 can provide potent grounds for...more

Under Construction - March 2017

by Snell & Wilmer on

Letter from the Editor - Welcome to the spring 2017 edition of our Under Construction newsletter. We hope 2017 is off to a good start for you and your company. An issue that seems to commonly come up in cost-plus...more

Missouri appellate court opens the door to Spearin claims by contractors against public entities

by Thompson Coburn LLP on

A Missouri appellate court has for the first time recognized that a construction contractor may pursue a breach of contract claim against a public entity owner based on the “Spearin doctrine,” meaning the contractor may...more

Significant Government Contract Litigation: A Year in Review

Last year provided a number of important claims and cases that further developed various aspects of litigation regarding the Contract Disputes Act (CDA). The major issues raised in some of the more notable claims include...more

New FAR Changes Incentivize Prime Contractors Not to Be Deadbeats in Meeting Their Payment Obligations to Their Small Business...

by McCarter & English, LLP on

One common complaint we hear from our subcontractor clients is “HOW CAN WE GET PAID????” Our experience has shown that whether through inadvertence, lack of subcontract management resources – or even as a predatory business...more

Illinois Court Addresses Contractual "Pay-If-Paid" Provisions - Appellate Ruling: Strict Standard is Required for Forfeiture of...

by Holland & Knight LLP on

The Illinois First District Appellate Court recently addressed the longstanding principle in A.A. Conte Inc. v. Campbell-Lowrie-Lautermilch Corp., 132 Ill. App. 3d 325 (1st Dist. 1985), of barring payments by general...more

Federal Court in Hawaii Holds that an Unlicensed Subcontractor May Pursue Contract Claims Against Contractor Notwithstanding...

by Pepper Hamilton LLP on

U.S. Pipelining LLC v. Johnson Controls, Inc., No. 16-00132 HG-RLP, 2016 U.S. Dist. LEXIS 150767 (D. Haw. Oct. 31, 2016) - This action arose out of the renovation of a condominium complex on Maui (Project). Johnson...more

New York Case Reminds Us That Some Courts Take Notice Provisions Very Seriously

A New York appellate court issued a decision in 2016 that serves as an important reminder to all tiers of the construction industry: courts take the notice provisions in your construction contracts very seriously. In the...more

Oregon High Court Clarifies How To Read the Four Corners of a Complaint

by Selman Breitman LLP on

On December 8, 2016, the Oregon Supreme Court issued a decision, West Hills Development Co. v. Chartis Claims, Inc., 360 Or. 650 (2016), clarifying what allegations in a construction defect suit will implicate coverage under...more

An update on payment issues on UK construction projects

by Dentons on

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’

by Thompson Coburn LLP on

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

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

by Faegre Baker Daniels on

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

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

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

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

by Carlton Fields on

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

Harsh Consequences for Contractor’s False Payment Certifications in Massachusetts

On most construction projects, a project owner will require the contractor to certify that it has fully paid each of its subcontractors as a condition to the owner making payment to the contractor. The purpose of these...more

Unpaid Subcontractors Beware

by Bennett Jones LLP on

Alberta Court of Appeal confirms no duty to disclose existence of labour and material bond unless asked - Labour and material payment bonds (L&M Bonds) serve an important purpose on a construction project by providing...more

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