Subcontractors

News & Analysis as of

New Jersey Supreme Court Affirms General Contractor’s Insurance Coverage for Consequential Damages Caused by a Subcontractor’s...

In an important recent decision, New Jersey joined a growing number of states holding that Insurance Services Office’s (ISO) 1986 comprehensive general liability (CGL) policy extends coverage to a property developer faced...more

DOE Clarifies Whistleblower Protections in Proposed Rule Revision

Department of Energy contractors and subcontractors may be subject to additional civil penalties. The US Department of Energy (DOE) recently published proposed revisions to its procedural rules for nuclear activities in...more

Emerging Labor & Employment Law Trends (Part 1)

With summer 2016 almost behind us, employers should begin to plan for the major labor and employment law trends expected to emerge in the final quarter of the year and into 2017. In the first part of this two-part series, we...more

Obama administration announces new sex discrimination guidelines for federal contractors

On June 14, 2016, the US Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) issued a final rule updating the sex discrimination guidelines governing federal contractors for the first time in...more

New OFCCP Sex Discrimination Rule Now in Effect

On June 14, 2016, the Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) published its updated sex discrimination rule for federal contractors and subcontractors. The Final Rule, "Discrimination on...more

Title Insurance Treatment of Mechanic’s Liens

The “Homeowner Amendments” to Ohio Mechanic’s Lien law significantly limits the rights of subcontractors and suppliers to file mechanic’s liens against a homeowner’s property. These apply if the owner has paid the builder in...more

Promissory Estoppel and Public Works Bid Disputes in California. Sooo You’re Telling Me There’s a Chance!

Sometimes we hear what we want to hear (or just ignore what the other person is saying). Sometimes this can lead to broken hearts. And, at other times . . . to empty pocketbooks . . ....more

New Jersey Supreme Court Holds CGL Policies Cover Developer/General Contractor for Damage Caused by Subcontractor’s Faulty...

The New Jersey Supreme Court recently considered whether damage caused by a subcontractor’s faulty workmanship constitutes property damage caused by an occurrence under a developer/general contractor’s commercial general...more

Separation Panes: Emerging Litigation Over Window Sealant

Relatively few people in the commercial construction industry are kept up at night by polyisobutylene (PIB) — the synthetic rubber sealant commonly used to provide a long term and durable moisture barrier for insulated glass...more

Court Dismisses Case Filed Under the Defend Trade Secrets Act

Earlier this year, we notified you about the passage of the Defend Trade Secrets Act of 2016 (DTSA) and how it affects employers. On August 8, 2016, a U. S. District Judge in the Southern District of Florida dismissed one of...more

Sentences in H1 2016

Transfer of former contractors´ employees to new subcontractor under the applicable collective bargaining agreement. Exemption of liability of new subcontractor on the salary debts of the previous contractor (Judgement of the...more

Breaking News—New Jersey Supremes at Last Deliver New Jersey Developers a Win against the Insurance Industry, Finding Coverage...

Action Item: Developers and contractors, as well as commercial and residential property owners and occupants, must be aware of a recent New Jersey Supreme Court decision in Cypress Point Condominium Association, Inc. v. Adria...more

New Jersey high court follows nationwide majority on CGL coverage for general contractor

On August 4, 2016, the New Jersey Supreme Court affirmed an intermediate court's ruling that where a subcontractor's defective work causes physical damage to other, nondefective parts of a general contractor’s project, it...more

Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract

In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions. The general contractor said that its fire sprinkler subcontractor was...more

New Jersey Supreme Court Gives Supreme Win to Policyholders

Yesterday, the Supreme Court of New Jersey unanimously affirmed the Appellate Division’s holding that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” and an “occurrence” under...more

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a...more

California Court Limits Recovery for General Contractors Relying on Subcontractor Bids

The court’s decision allows subcontractors to place unforgiving terms in their bids and gives them an ultimate out if general contractors do not agree to those terms. General contractors should pay attention to a...more

Did You Really Accept That Bid? – How Contractors Can Avoid Post-Acceptance Bid Disputes Over Contract Terms

When California general contractors submit bids to an owner, can they force their subcontractors to honor their bids? Can they recover damages if the subcontractor later refuses to do so? While the general rule in...more

Alert to Contractors – California Court of Appeals (2d App. Dist.) Rules Subcontractor Price in Proposal Containing Material...

Flintco Pacific, Inc. v. TEC Management Consultants, Inc., 2016 Cal. App. LEXIS 594 (Cal. App. 2d Dist. June 21, 2016) - There was an important California decision published on July 19, 2016 (decided June 21, 2016)...more

FAQ on the Limitations on Subcontracting New Rules

We recently held a live seminar and a webinar on the new Limitations on Subcontracting (“LOS”) rule. We reviewed the questions submitted during the sessions, and noticed that many of the same questions were being asked by...more

Minnesota Rewrites Construction Rules for Prompt Payment and Retainage

Minnesota has modified its prompt payment and retainage statute (Minn. Stat. 337.10). These revisions mean that many owners, contractors and subcontractors will have to revise the payment provisions of their construction...more

California Public Works Contractors Will Be Required to Submit Payroll Records Electronically Starting August 1

The California Department of Industrial Relations (DIR) announced this week that the requirement for public works contractors and subcontractors to submit certified payroll records (CPRs) electronically using the DIR’s...more

Circuit Court Signals Potential Impacts of Escobar

Lower courts have begun grappling with the implications of the U.S. Supreme Court’s decision in Universal Health Services, Inc. v. United States ex rel. Escobar. In U.S. ex rel. Sheet Metal Workers International...more

PilieroMazza Seminar: SBA's New Rules on the Limitations on Subcontracting

Overview - - Background - Limitations on Subcontracting - Identity of Interest - Joint Ventures - Size Recertification - Size Protests - Nonmanufacturer Rule Please see full...more

New, Relaxed Regulations Make Drone Use on Construction Projects Easier

The Federal Aviation Administration (FAA) recently introduced relaxed regulations concerning the use of drones for commercial purposes. The new regulations could have a significant impact on drone usage in the construction...more

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