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Construction Contracts Contract Terms

Dentons

How the West is Liened: A comparison of builders lien legislation in British Columbia and Alberta

Dentons on

Every Canadian province and territory has its own builders lien act meant to ensure that contractors and workers who contribute to improvements on land are paid for their services and materials. These acts are complex and can...more

Robinson+Cole Construction Law Zone

A Liquidated Damages Provision Might Not Liquidate All Potential Damages

The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

Venable LLP on

​​​​​​​The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...more

Dentons

Be aware, switch contractors with care: Firing a head contractor mid-project does not always result in termination for lien...

Dentons on

Determining when a construction contract is terminated is important for all parties involved in a project. For contractors and subcontractors, it can dictate lien filing deadlines. For owners, it can determine holdback...more

Robinson+Cole Construction Law Zone

Terminator Beware

Terminating a contract is a serious and sometimes risky decision. Whenever a client seeks advice regarding termination, a lawyer should stress the importance of strict compliance with the contractually specified termination...more

Dentons

New obligations on businesses kick in soon - no more bullying or thuggish behaviour

Dentons on

The Fair Trading Amendment Act 2021 places new significant obligations on businesses and provides new protections for consumers and small businesses. There are at least two significant new protections, which come into effect...more

Miller Nash LLP

Seattle Tunnel Partners’ Bertha Case Sinks as Appeal Hits Dead End

Miller Nash LLP on

In 2011, the Washington State Department of Transportation (WSDOT) agreed to pay Seattle Tunnel Partners (STP) $1.35 billion to construct a new tunnel under Seattle under a design-build contract. The project came to an abrupt...more

Burr & Forman

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

Burr & Forman on

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

Porter Hedges LLP

Are Forum and Choice of Law Provisions in Texas Construction Contracts Enforceable?

Porter Hedges LLP on

Most sports fans are familiar with the concept of home field advantage — the idea that the home team gains an advantage over the visiting team because it is playing in familiar facilities, does not have to travel long...more

Akerman LLP

Virginia Prohibits Pay-If-Paid Clauses and Limits Pay-When-Paid Language

Akerman LLP on

On April 27, 2022, Virginia Governor Glenn Youngkin ratified amendments to two Virginia statutes, prohibiting pay-if-paid clauses in construction contracts, and limiting the effectiveness of pay-when-paid clauses in certain...more

Burr & Forman

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

Burr & Forman on

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

Burr & Forman

Feeling Rejected? MA Court Construes for the First Time the Provisions of the Prompt Pay Act

Burr & Forman on

In life, rejection is often hard to swallow.  In construction, that rejection can sometimes amount to millions of dollars.  A Massachusetts court recently held that an owner’s rejection of the contractor’s payment...more

Tarter Krinsky & Drogin LLP

Cost Increases Up the Ante for the Construction Industry – Is a Price Escalation Clause Your Best Bet?

Charter schools have experienced some of the highest enrollment growth due to pandemic-related factors influencing how we rethink education. As a result, there continues to be significant increase in the renovation and...more

Tarter Krinsky & Drogin LLP

Indemnity Provisions – What You Need to Know

The indemnification clause is one of the most important provisions in a construction contract. It transfers risk from one party, the “indemnitee,” to another party, the “indemnitor.” The risk is transferred by way of the...more

Stoel Rives -  Ahead of Schedule

Inflation: The Elephant in a Construction Dispute or Contract Negotiation

Inflation is hitting the country hard. Consider this: $1 million in January 2020 has the same buying power as over $1.7 million today, according to the Consumer Price Index inflation calculator. How much weaker the dollar...more

Anderson & Kreiger LLP

Pay Now, Argue Later: Appeals Court Affirms Strict Interpretation of Prompt Pay Act

Anderson & Kreiger LLP on

On June 7, 2022, the Massachusetts Appeals Court affirmed a strict reading of the Prompt Pay Act, G. L. c. 149, § 29E (the “Act”) in Tocci Building Corp. v. IRIV Partners, LLC, Case Nos. 21-P-393 & 21-P-733.  That case and...more

Murtha Cullina

MA Appeals Court: Contractor's Pay Applications Deemed Approved for Owner's Failure to Comply with Prompt Pay Law

Murtha Cullina on

The Massachusetts Appeals Court has interpreted for the first time the Massachusetts Prompt Payment Act (the “Prompt Pay Law”) in the matter of Tocci Building Corporation v. IRIV Partners, LLC, et al., Nos. 21-P-393 &...more

Gray Reed

Texas Supreme Court: Actual Notice Does Not Satisfy Written Notice Requirement

Gray Reed on

In James Construction Group, LLC v. Westlake Chemical Corporation, the Texas Supreme Court clarified the standard necessary to satisfy notice provisions in a construction contract.  The Court’s opinion reached two key...more

Schoonover & Moriarty LLC

Don’t be fooled: the Government can constructively change any contract–not just ones for construction.

In the legal biz, we encounter an array of odd linguistic quirks (which we’re trying to quell but their hold is tenacious!). Lawyers often “deem” something to exist or to be true, when normal people would use only the verb...more

Burr & Forman

You Can’t Treat Construction Claims Like Your Grandkids

Burr & Forman on

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

Burr & Forman

Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

Burr & Forman on

Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. If you have construction projects in Virginia, then read on. If you want know whether your state prohibits...more

Burr & Forman

Broad Form Lien Waivers No Longer Part of the Game in North Carolina

Burr & Forman on

North Carolina Avenue is one of the hottest properties in Monopoly, says most of my kids.  And if you are a contractor or subcontractor in North Carolina, the law makers recently afforded you some additional protections to...more

Stoel Rives -  Ahead of Schedule

War-fueled Construction Cost Increases May Warrant Look at Force Majeure

The Russian invasion of Ukraine and economic sanctions imposed by countries around the world in response have disrupted supplies of fuel, steel, and other materials necessary for construction. This has resulted in price...more

Bradley Arant Boult Cummings LLP

Virginia Is for Lovers… of Strict Contract Language: New Law Prohibits Pay-if-Paid Clauses in Construction Contracts

Virginia has joined the growing number of states that prohibit “pay-if-paid” clauses. The new law, known as Virginia Senate Bill 550, amends Virginia’s Prompt Payment Act (Va. Code § 2.2-4354) and its relatively new (July 1,...more

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”).  In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more

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