Subcontractors

News & Analysis as of

The Government Knowledge Defense to the False Claims Act after Universal Health Services

As recited in seemingly every brief and opinion involving the statute, the False Claims Act traces its history to the Civil War and efforts to deter and punish fraud on the Lincoln administration. The lure of treble damages,...more

Arizona Court of Appeals Rules That Coverage for an Additional Insured is no Greater Than Coverage Afforded a Named Insured - -...

In a matter of first impression, the Arizona Court of Appeals recently ruled that the “Your Work Exclusion” in a Commercial General Liability (“CGL”) insurance policy bars coverage for an additional insured when the only...more

New Federal Acquisition Regulation Rule - Reporting Reduced or Untimely Payments to Small Business Subcontractors

The FAR Council has issued a final rule amending the Federal Acquisition Regulation ('FAR") to implement a section of the Small Business Jobs Act of 2010. The new rule, which goes into effect on January 19, 2017, will...more

Lower Tier Small Business Subcontracting Plan Credit Finally In Sight

Right before the tail end of 2016, SBA delivered its long-awaited Final Rule regarding lower-tier small business subcontracting plan credit. Implementing directives initiated by Congress in the 2014 National Defense...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

Construction Injuries Under the Privette Doctrine. An Electrifying, but Perhaps Not Particularly Shocking, Story . . .

We’ve talked about the Privette doctrine before. The Privette doctrine, named after the court case Privette v. Superior Court (1993) 5 Cal.4th 689, provides in general that project owners and contractors are not responsible...more

2016’s Top 5 Most Intriguing Developments In EEOC-Initiated Litigation (And A Preview Of Our Annual EEOC Litigation Report)

We are once again pleased to offer our loyal readers our annual analysis of the five most intriguing developments in EEOC litigation in 2016, along with a pre-publication preview of our annual report on developments and...more

Weekly Update Newsletter - December 2016 #5

GOVERNMENT CONTRACTS - Submission for Office of Management and Budget Review; Payment of Subcontractors - On January 20, 2016, the Department of Defense, Government Accountability Office, and National Aeronautic and...more

Insurance – Coverage – Pyrolysis as an “Occurrence”

Tidwell Enterprises, Inc., et al. v. Financial Pacific Ins. Co., Inc. - Court of Appeal, Third Appellate District (December 20, 2016) - According to Merriam-Webster’s Collegiate Dictionary, Pyrolysis is a “chemical...more

Are You Really An Additional Insured?

Parties structuring transactions or business relationships often attempt to shift risk to their counter-party by having such party included as an additional insured on the counter-party’s insurance policies. In the real...more

Switches and Sweets: Belsnickel Brings Defense Contractors and Subcontractors New Cybersecurity Controls in Preholiday Revisions...

If you are aware of German Christmas folklore (and really, who isn’t?), you know that Belsnickel is a legendary companion of St. Nick who carries a switch with which to punish naughty children and a pocketful of sweets to...more

Weekly Update Newsletter - December 2016 #4

GOVERNMENT CONTRACTS - Payment of Subcontractors - The Department of Defense (“DOD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (‘NASA”), have issued a final rule...more

Pennsylvania State Construction Notices Directory Is Now Available

Consistent with the October 2014 amendments to the Pennsylvania Mechanics' Lien Law, the Pennsylvania Department of General Services has created the internet-based State Construction Notices Directory (the "Directory"). The...more

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

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

No Stay for Other Pay-Related Regulations

A trio of recent court decisions staying implementation of the controversial persuader rule, most of the much-criticized Fair Pay and Safe Workplaces (“FPSW”) executive order, and the Department of Labor’s highly publicized...more

PA to Establish Construction Notices Directory to Further Regulate Mechanics' Lien Claims

The Commonwealth is to establish a Construction Notices Directory by December 31, 2016, although that date may be delayed. When the Directory becomes operational, owners of construction projects over $1,500,000 will have the...more

General Contractor’s Excess Insurer Denied Equitable Contribution From Subcontractor’s Excess Insurer

In Advent v. National Union Fire Ins. Co., etc. (No. H041934 filed 12/6/16), a California appeals court refused to order a subcontractor’s excess insurer to contribute to a general contractor’s excess insurer because the...more

Under Construction - December 2016

Welcome to the winter 2016 edition of our Under Construction newsletter. We hope your year has been good to your family, your company and you as we wrap up these remaining few weeks of 2016. A recent hot topic with...more

Torts – Premises Liability

Al Khosh v. Staples Construction Company, Inc. - Court of Appeal, Sixth Appellate District (October 26, 2016) - Under Privette v. Superior Court (1993) 5 Cal.4th 689, an employee of an independent contractor...more

An update on payment issues on UK construction projects

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’

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

Don’t Let Forced Labor and Bribery in Your Supply Chain Spoil the Holidays

The holiday retail season is an ideal time to check that forced labor and bribery—two top and interconnected supply-chain threats—do not undermine the success of your critical sales period. Not long ago, many in the...more

Illinois Appellate Court Ruling Has Far-Reaching Implications for Construction Participants in Wind Energy Projects

A landmark opinion issued by the Second District Illinois Appellate Court on November 9, 2016, contains vital information for construction industry participants involved in Illinois wind energy projects. In AUI Construction...more

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

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

DOL Issues New Paid Sick Leave Rule for Federal Contractors and Subcontractors

Beginning January 1, 2017, federal contractors and subcontractors may have to start providing up to 56 hours - the equivalent of seven working days - of paid sick leave per year to their employees who are working on federal...more

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