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Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of...more

When is a Contractor’s Termination for Default Proper? When it Does Bad Things!

Sometimes you “do” bad things.  Sometimes you “look like” you do bad things.  Just look at the difference between Bad-boy Jack and my youngest daughter, who just “looks like” she’s up to no good.  In the world of construction...more

Tongue Twister: Commander Closes Construction Site for COVID and Contractor Can’t Recover Contract Costs

Last month, the Armed Services Board of Contract Appeals held that a public contractor could not recover $100k in construction costs incurred following the government’s decision to close down a base in Tennessee due to...more

You Can’t Treat Construction Claims Like Your Grandkids

I have seven children, and two of them have flown the coop.  I also have two grandchildren who are ripe for spoiling. You see, grandchildren are a different type of kid, which means I get to treat them different than the...more

Not Just An Old Wives’ Tale: Negotiating “Paid In Full” Check Binds Contractor

Long before I was an attorney, I heard this tale that if you endorsed a check that had the words “PAID IN FULL” written on the check, then you were accepting the check as full payment of whatever was owed. But I have never...more

No Longer in the Dark: A Primer on the Distinction between Delay and Disruption Damages in a Construction Dispute

If you are left in the dark about something, you don’t have the information you should have to make an informed decision. Delay claims on a construction can be confusing, especially when you think about the delay to the work...more

Email Sent After Final Payment Held Insufficient to Preserve Timeliness of Claim Against Government

They say that hindsight is 20/20. Who is they, anyway? The old proverb means that it is easy to understand something after it has already happened. In the world of construction contracts, preservation of claims made in...more

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

It goes without saying that in the world of construction contracts … words matter! There is language in the Goes decision that a cost-plus contract imposes upon the contractor an implied duty to incur reasonable and proper...more

The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

As you may be aware, one of the greatest risks on a construction project involves the payment process. Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a...more

Design-Build Contractor Held to the Same Standard On Differing Site Conditions Clause

A court recently held that the type of contract delivery method did not change the applicability of the differing site conditions clause. Appeal of John C. Grimberg Co., Inc., ASBCA No. 58791 (Oct. 25, 2018) involved the...more

When Is A Contractor’s Termination for Default Proper? When It Does Bad Things.

Sometimes you “do” bad things.  Sometimes you “look like” you do bad things.  Just look at the difference between Bad-boy Jack and my youngest daughter, Haven, who just “looks like” she’s up to no good.  In the world of...more

Arbitrator: Produce Those Construction Documents . . . And Me: You Have No Authority!

Construction disputes often involve voluminous amounts of discovery, including documents in the hand of third parties.  And if the case is subject to arbitration, it is likely that there will be a dispute about whether the...more

Contracting Offficer’s Belief That Contractor Could Not Meet Schedule Requirements Insufficient to Support Default Termination

There is objection evidence.  There is subjective evidence.  And sometimes, it is a combination of both  A case cannot go much worse when a court’s opinion starts with the following: “This case concerns a contract in which a...more

Do Not Pass “Go” You Out-of-State, Unlicensed Contractor

I forgot how much fun it was playing family board games as a child. We recently dusted off some of the oldies like Sorry, Life and Monopoly to play with the kids. I laughed uncontrollably the first time I got to say, “Go...more

When Is the Contractor’s Termination for Default Proper? When It Does Bad Things

Sometimes you “do” bad things. Sometimes you “look like” you do bad things. Just look at the difference between Bad-boy Jack and my youngest daughter, Haven, who just “looks like” she’s up to no good. In the world of...more

Between A Rock and A Hard Place: How the Severin Doctrine May Relate to Your Statute of Limitations Period

I previously blogged about the rules relating to pass-through claims, where a prime contractor’s recovery from an owner for damages suffered by its subcontractor is limited in certain circumstances. In the post, I talked...more

Cosmetic Defects Found to Be Basis for Termination of Contractor for Default

In the construction world, many of us lawyers talk about what is known as a material breach in order to support a termination of the contract. In other words, the event that supports the claim for default or termination or...more

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