Subcontractors Contractors

News & Analysis as of

What are the three most important risk-shifting provisions contractors and subcontractors should be concerned about?

“No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering...more

Construction Law Advisory - August 2015

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Pennsylvania’s Contractor and Subcontractor Payment Act Does Not Apply to Public Projects

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Red Flags for Homebuilders Related to DOL's Latest Guidance on Independent Contractors

On July 15, 2015, the U.S. Department of Labor (DOL) issued an “Administrator’s Interpretation” (AI 2015-1) providing guidance on whether workers are employees or independent contractors under the Fair Labor Standards Act...more

NLRB: When the Law is Not the Law – A Huge Change in Business Relationships

The National Labor Relations Board (NLRB) in a 3-2 decision last Thursday gutted more than 30 years of legal precedent when it changed the joint employer standard in business relationships in a case involving Browning-Ferris...more

DoD's New Cybersecurity and Cloud Standards and Reporting Requirements

The Department of Defense (DoD) released interim rules implementing provisions of the 2013 and 2015 National Defense Authorization Acts. The rules, released on Aug. 26, 2015, are effective immediately and establish the...more

Don’t Guess On How to Assert A Mechanic’s Lien

Many contractors and subcontractors have learned this the hard way: failure to comply with the filing and notice requirements for a mechanic’s lien can result in losing the lien and an effective way of ensuring payment for a...more

How Will Browning-Ferris Change the Test for Joint-Employer Status for Union and Non-Union Employers?

In a ruling that will affect most business relationships and extends far beyond either labor law or the concept of employment generally, the National Labor Relations Board (“NLRB” or “Board”) issued a much awaited decision...more

Construction & Engineering Toolkit: The Construction Industry Tax Deduction Scheme (CIS) - August 2015

In This Issue: The Construction Industry Tax Deduction Scheme (CIS) The Construction Industry Scheme (or CIS, as it is more commonly known) is a tax deduction scheme. It concerns construction work and...more

Federal Government Can Revoke Acceptance Years Later and Demand Replacement of Work

Many contractors mistakenly think that once the government accepts work and pays for it, that the work is, well, "accepted." Some also believe that the one-year warranty provided in the Federal Acquisition Regulation (FAR)...more

Last Call: California Legislature Makes Final Push for 2015 Session

The California Legislature reconvened on Monday, August 17, to finish its work for the 2015 regular session, which must end by September 11. The following bills are of particular interest to California private sector...more

A little good news: OSHA Grants Some Reprieve For Compliance with Its New Construction Industry Confined Space Rules

On May 4, 2015, OSHA issued a final rule setting new standards for workers in confined spaces on construction sites. The new rule requires coordination for multiple employers at the worksite, a competent person to evaluate...more

Fifth Circuit Finds Erosion in Texas—Because Endorsements Are Transformative

In Amerisure Mut. Ins. Co. v. Arch Specialty Ins Co., No. 14-20239 (5th Cir. April 21, 2015), a case that applied Texas law, the U.S. Court of Appeals for the Fifth Circuit recently held that the word “expenses,” as used in a...more

Make the Most of Your Mediation: The Single-Family Construction Defect Case

How can you economically and effectively settle the single-family construction defect case? In a recent mediation involving a homeowner, contractor and 15 subs, the participants used the following practices, which resulted in...more

Antitrust Whistleblower Protection Bill Introduced In Senate (Again)

On June 17, 2015, members of the Senate Judiciary Committee introduced the Criminal Antitrust Anti-Retaliation Act of 2015 (Act), a bill that proposes whistleblower protection for employees who provide information to the...more

Construction Case Law Update - July 2015

Involuntary Dismissal of Counterclaims – In a suit between a developer and general contractor, the trial court erred in dismissing the general contractor’s counterclaims, without a motion by the developer, before the...more

Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to...more

Conclusory Allegations Held Insufficient to Support Declaratory Relief on Right to Independent Counsel or Allocation of Defense...

Centex Homes v. St. Paul Fire & Marine Ins. Co., et al. - Court of Appeal, Fourth Appellate District (May 22, 2015) - In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. E060057, filed 5/22/15), a California...more

Construction Licensing – Substantial Compliance – Settlements and Suspension of License

Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. - Court of Appeal, Second Appellate District (May 18, 2015) - Business and Professions Code Section 7031 precludes a contractor from maintaining any action...more

Reminder: Minnesota Legislature Tweaks on Responsible Contractor Act Take Effect 7/1/2015

The Minnesota legislature recently passed a bill amending Minnesota’s Responsible Contractor Act. Going into the session, contractor lobbyists knew they could not expect of the law to be repealed. Their goal was to reduce...more

All is Fair in Lovell and Litigation

Most California construction attorneys know, or should know, that you need to “prove” you’re a licensed contractor in a construction case. And, by “prove,” that means more than simply alleging in a pleading that you are...more

Cybersecurity for Contractors and Design Professionals

Data breaches and the resulting havoc for companies that must deal with them are all over the news. While most construction industry businesses do not handle large amounts of consumer data, you cannot simply ignore...more

Pennsylvania Supreme Court Clarifies Applicability of Contractor and Subcontractor Payment Act

Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...more

Construction Alert: Don't Overlook the Importance of Additional Insured Endorsements

Whether you are giving one to someone else or asking for one, you need to use additional insured endorsements (AIE) that give you as much protection as possible and that meet the promises you have made in your contracts. A...more

Supreme Court of Pennsylvania Holds Contractor and Subcontractor Payment Act (“CASPA”) Inapplicable to Public Works Projects

Clipper Pipe & Service, Inc. v. The Ohio Cas. Ins. Co., 2015 Pa. LEXIS 1275 (PA June 15, 2015) - The Supreme Court of Pennsylvania held that CASPA, 73 P.S. §§501-516, “does not apply to a construction project where...more

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