Subcontractors Construction Contracts

News & Analysis as of

Michigan Court of Appeals Reverses Lower Court, Finds An Express Contract

The Michigan Court of Appeals recently reversed a lower court in a contractor-subcontractor dispute, requiring analysis of the contract and unjust enrichment doctrines. In the unpublished decision, Lawrence M. Clarke, Inc. v....more

Food for Thought – Ten Post ADCNC Construction Defect meeting comments on “the system” by CD practitioners

The process still works if everyone cooperates. That means plaintiffs, developers, subcontractors and insurance companies. A breakdown exists in the following areas: Plaintiffs are not being uniformly required to...more

Privity Of Contract Is Still The Rule For Breach-Of-Implied-Warranty Claims Against Subcontractors, Even For New Home Construction

Arizona has long recognized the existence of an implied warranty arising out of new home construction. In Columbia Western Corp. v. Vela., the Arizona Court of Appeals expanded implied warranty liability to cover...more

Federal District Court Holds that General Contractor’s Failure to Provide Notice of Default Does Not Preclude Recovery on...

Curtiss-Manes-Schulte, Inc. v. Safeco Insurance Company, 2015 U.S. Dist. LEXIS 10032 (W.D. Mo. 2015) - This dispute between a general contractor and its subcontractor’s performance bond surety arose out of a renovation...more

Third Circuit Holds Subcontractor To Its Proposal On Grounds of Promissory Estoppel

DCK TTEC, LLC v. Postel Industries, Inc., 2015 U.S. App. LEXIS 2775 (3d Cir. Feb. 25, 2015) - This action arose out of the construction of two maintenance hangars at the Marine Corps Air Station in Yuma, Arizona (the...more

Construction Lien Law: What You Need to Know to Protect Your Company [Video]

Presented by Tobey Coleman and Emily Yeatts This webinar provides an overview of North Carolina’s construction lien laws and how they apply to and impact each party involved in a typical construction project – owners and...more

Alberta Court Clarifies Builders’ Lien Registration When Contract Abandoned

On February 25, 2015, the Alberta Court of Appeal released its decision in Tervita Corporation v. ConCreate USL (GP) Inc. In that case, the court was required to determine whether a builders’ lien registered by Tervita...more

They Can’t Take That Away From Me. Well, At Least Not At First

Some of you may recall the George and Ira Gershwin song, They Can’t Take That Away From Me made famous by Fred Astaire and Ginger Rogers in the film, Shall We Dance. A recent amendment to a mechanic’s lien statute will limit...more

Tips for Suspending Work for Non-Payment without Getting Fired

All work and no pay making you crazy? A temporary suspension of work may be an appropriate self-help remedy for an owner’s or contractor’s non-payment. Although termination of the contract for the material breach of...more

Under Construction - March 2015

Welcome to the spring edition of our Under Construction newsletter. There have been some interesting legal changes that have taken place recently with the potential to significantly impact the construction...more

Analysis: Prevailing Party In Jury Trial Finds Uncertainty In Remedies Available Under Pennsylvania Contractor And Subcontractor...

Since 1994, Pennsylvania law has provided enhanced remedies for prevailing in a payment dispute arising out of a construction project. The prevailing party in a recent jury trial discovered uncertainty in the precise...more

Does the 72-Hour Rule Allow a Contractor in Maryland to Fix a Mistake in its MBE Participation Schedule After Bid Opening?

A recent Maryland Board of Public Works meeting addressed whether the state has flexibility in applying minority business enterprise (MBE) regulatory requirements in State contracts....more

New York Appellate Division Holds That Subcontractor’s Failure to Give Cure Notice Before Stopping Work Did Not Bar Recovery...

U.W. Marx, Inc. v. Koko Contracting, Inc., No. 518611, 2015 N.Y. App. Div. LEXIS 600 (N.Y. App. Div. Jan. 22, 2015) - The Appellate Division of the Supreme Court of New York affirmed judgment in favor of a...more

Caught in the Middle: What Is a Supplier Supposed to Do When Its Customers Ask to Use a DBE as a Pass-Through?

Suppliers are caught in the middle of a new enforcement trend in federal, state, and local investigations of disadvantaged business enterprise (DBE) fraud. Historically, DBE fraud investigations have focused on the...more

California Court of Appeals Determines Subcontractor is Unable to Maintain Cross-Claims for Equitable Indemnity and Contribution...

In State Ready Mix, Inc. v. Moffatt & Nichol, 232 Cal. App. 4th 1227 (2015), the California Court of Appeals considered whether a subcontractor could maintain cross-claims for equitable indemnity and contribution against the...more

New Notice, Registration and Reporting Requirements for California Public Works Projects

- Effective July 1, 2014, (or a later date if DIR's online registration system was not in place on that date) contractors and subcontractors working on "public works" projects were required to register with the California...more

Reminder - Maryland's Prevailing Wage Law for Elementary and Secondary School Construction Projects is in Effect

Maryland's new prevailing wage law for elementary and secondary school construction projects (HB 727/SB 232 from the 2014 General Assembly session) is in effect. This law requires all such construction projects costing more...more

Sometimes it Depends on “Whose” Hand is in the Cookie Jar

In a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that...more

Construction Case Law Update - January, 2015

FLORIDA STATE CASES - Slavin Doctrine; Design Contracts - Under the Slavin doctrine, a subcontractor design company was not liable despite negligently designing intersection traffic lights that resulted in a fatal car...more

Recent New York Decision Reaffirms Limits to Surety's Liability on a Delay Claim Made Under a Payment Bond

Advanced Automatic Sprinkler Co., Inc. v. Seaboard Surety Co., Inc., No. 650321/2001, N.Y.L.J. 1202678994141, at (Sup. Ct. New York County Dec. 3, 2014), the Court (Hon. Marcy Friedman) granted the defendant surety’s motion...more

No Damages for Delay Exceptions: Active Interference?

While a contractor generally has a right to a time extension and damages stemming from a delay caused by the owner, the owner (or general contractor if the harmed party is a subcontractor) may be able to assert several...more

Your “Independent Contractor” Clause Just Got a Little Less Relevant

Construction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon. When subcontracting work, parties usually make it...more

Where, Oh Where, Can My Lawsuit be Filed?

When preparing or negotiating the terms of construction contracts, parties often indicate where any dispute that may arise between the parties must be litigated. Courts will generally enforce such “venue” or “forum selection”...more

New York State Court Dismisses Construction Manager’s Third Party Claims Against Subcontracting Geotechnical Engineer

In Board of Mgrs. of the A Bldg. Condo. v. 13th & 14th St. Realty, LLC, 2014 N.Y. Misc. LEXIS 5632; 2014 NY Slip Op 33353(U) (New York Cty. Sup. Ct. Dec. 18, 2014), Hudson Meridian Construction Group, LLC, s/h/a Hudson...more

Health Care Industry Finds Cure to Save Time and Money on New Facilities

To meet the demands of an aging population and health care reform, many new hospitals and other health care facilities are being built. These projects are typically large, costly and complex and, therefore, merit careful...more

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