News & Analysis as of

Subcontractors

Small Business Payment For Performance Act Unanimously Leaves Committee – Will SBC Construction Contractors Be Able To Reduce...

Currently pending in the House of Representatives is H.R. 2594, the “Small Business Payment for Performance Act of 2017” (the “Bill”). This Bill unanimously passed the House Committee on Small Business earlier today. While...more

Posting of workers

by DLA Piper on

On 30 May 2017, Law No. 29/2017 concerning the posting of workers in the framework of the provision of services was published in the Official Journal of the Portuguese Republic....more

Safety Agency Applies Federal Law To Bar Employer Safety Violation Citation - Agency’s Application of 5th Circuit Appeals Court...

by Fisher Phillips on

The federal agency that reviews OSHA safety violation cases, also known as the OSH Review Commission, recently adopted the decision of one of its Administrative Law Judges who applied 5th Circuit precedent to reject a safety...more

Avoiding Common Subcontracting Pitfalls

by PilieroMazza PLLC on

Companies often team together to bid on government procurements in order to boost their chances of being awarded contracts and, if awarded the contracts, to provide greater support to the government than they may be able to...more

Your Contract Requires You To Be Named as an Additional Insured: Are You?

by Reed Smith on

Last week, New York joined the ranks of several states that may limit a government contractor’s access to insurance coverage despite being added, as set forth in the contract, as an “additional insured” under a prime or...more

Supreme Court of Wisconsin Holds That Private Subcontractor Is Immune to Property Damage Claims by Adjoining Landowners Because it...

by Pepper Hamilton LLP on

Melchert v. Pro Elec. Contrs., 2017 Wis. Lexis 169 (April 7, 2017) - The Wisconsin Department of Transportation (“DOT”) contracted with Payne & Dolan (“P&D”) as General Contractor on a road improvement project. P&D in turn...more

Indemnitor Owes Indemnity Even Where Indemnitee is Actively Negligent, California Court Holds

Indemnity provisions are one of the most fought over provisions in design and construction contracts. But while parties generally understand the intent behind indemnity provisions — that one party (the “indemnitor”) agrees to...more

Real News - Spring 2017

by DLA Piper on

The use of drones across all sectors is increasing. Accountancy rm, PwC estimates that the emerging global market for business services using drones is valued at over USD 127 billion and the biggest slice of that market is...more

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

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