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Construction Contracts Liquidated Damages

Under Construction - December 2017

by Snell & Wilmer on

Letter from the Editor - Welcome to the final 2017 edition of our Under Construction newsletter. It is hard to believe that 2018 is right around the corner! In this issue, we highlight several topics affecting the...more

A Myth About Delay – Revisited

by Gray Reed & McGraw on

Construction lawyers routinely deal with delay claims. I have presented or defended more of them than I can remember. That is why I was curious when, earlier this year, I received a series of email invitations to...more

Michigan Court Of Appeals Holds That Contractor Who Failed To Timely Seek A Time Extension Is Barred From Contesting Liquidated...

by Pepper Hamilton LLP on

Abhe & Svboda, Inc. v. State of Michigan Department of Transportation, 2017 Mich. App. Lexis 1387 (August 29, 2017) - Contractor Abhe & Svboda, Inc. (“A&B”) entered into a contract with the Michigan Department of...more

The 2017 AIA Changes that Matter to Owners

Last time, we discussed how some of the 2017 revisions to the American Institute of Architects (AIA) form design and construction contracts benefit general contractors. Such revisions added clarity to provisions concerning...more

Who says you can’t choose between liquidated damages or actual damages?

by Snell & Wilmer on

In Colorado, courts enforce liquidated damages provisions if three elements are satisfied: (1) the parties intended to liquidate damages; (2) the amount of liquidated damages was a reasonable estimate of the presumed actual...more

Concurrent delay and the 'prevention principle'

by White & Case LLP on

In a judgment issued earlier this week, the English High Court considered whether a contract excluding any claim for an extension of time in respect of periods of concurrent delay caused time to be rendered "at large" due to...more

Liquidated damages for sectional completion

by White & Case LLP on

In the recent English High Court case of Vinci Construction UK Ltd v. Beumer Group UK Ltd, the court considered whether liquidated damages were enforceable under a construction contract which provided for sectional...more

Liquidated Damage Provisions – A Good Idea or an Unenforceable Penalty?

by Faegre Baker Daniels on

Construction contracts often contain a provision for a stipulated or “liquidated” damage amount in the event of specified contract breaches. These provisions can be an effective tool to recover losses that otherwise may go...more

Fourth Circuit Affirms Dismissal of Contractor’s Complaint, Declining to Create ‘Ultra Vires’ or ‘Bias’ Exceptions to the...

by Pepper Hamilton LLP on

Balfour Beatty Infrastructure, Inc. v. Mayor and City Council of Baltimore, 2017 U.S. App. Lexis 7252 (4th Cir., April 25, 2017) - The United States Court of Appeals for the Fourth Circuit recently addressed whether the...more

Under Construction - June 2017

by Snell & Wilmer on

Welcome to the summer 2017 edition of our Under Construction newsletter. In this issue, to accompany the summer heat, we highlight several hot topic items affecting the construction industry, such as the recent revisions to...more

Energy Newsletter - June 2016

by King & Spalding on

Oil and Gas Unitization: Specific Considerations for Cross-Border Unitization - Setting the Scene - There are more than twenty bilateral unitization Treaties and Joint Development Agreements (JDAs) in place today...more

Amending FIDIC Provisions on Delay Liquidated Damages: a Case Note on J Murphy & Sons Ltd v Beckton Energy Ltd [2016] EWHC 607...

by King & Spalding on

The perfect construction project is completed on time, on budget, and in accordance with the Employer’s specification and/or performance requirements. In reality, delays frequently occur and with such delay the potential for...more

Ohio Supreme Court Holds Reasonableness of Liquidated Damage Provision to Be Determined Based Upon the Parties’ Knowledge at Time...

by Pepper Hamilton LLP on

Boone Coleman Constr., Inc. v. Vill. of Piketon, 2016-Ohio-628, 2016 Ohio LEXIS 441 (Ohio Feb. 24, 2016) - A general contractor entered into a construction contract with a public agency for a road construction project...more

Construction Corner: Construction Contract Basics

by Shipman & Goodwin LLP on

In a previous Construction Corner Post we discussed the primary elements of a design contract for a school construction project. In this post we will describe the basic elements of a construction contract for a school...more

California Court of Appeals Says, “We Like Eich(leay)!”

Time is money. And nowhere can than be best observed than on a construction project. Project delays can mean lost profits for owners, liquidated damages for general contractors, and increased material, labor, field...more

Proving Contractor Licensure in California. The Tribe Has Spoken.

As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate  – the judge or the jury?...more

Termination for Convenience Contract Provision Retains Responsibility for Liquidated Damages

by Robinson & Cole LLP on

Most construction contracts between an owner and prime contractor provide the owner with the right to terminate the contract for cause or for convenience. In an important decision released in early April, the Connecticut...more

Delay and Disruption Claims: Big Impacts on Your Bottom Line

by Snell & Wilmer on

“Time is money” in construction. Owners, design professionals and contractors use time to calculate the impact of lost performance. Yet delay and disruption can be commonplace in construction projects. The reasons for the...more

Letters of the Law: 'E' is for Express Terms

by DLA Piper on

Contract terms are not always in black and white. Express terms are those which are specifically agreed between the parties. In a written contract 'express' terms are those written on the pages of the contract. However,...more

Letters of the Law: 'B' is for Breach

by DLA Piper on

No project is truly complete before one party accuses the other of “breach of contract”. Often the initial accusation is an attempt to scare the other party into action, to compel it to perform to the word of the...more

Finally - A Different Result for a Government Contractor's Differing Site Condition Claim

by Baker Donelson on

For any government contractor that has had a differing site condition claim denied despite relying on a government geotechnical report about the subsurface conditions of the project site, the U.S. Court of Appeals for the...more

Construction Tip #7: Developers Should Not Rely Entirely On Standard Forms Of Construction Contracts

by Bilzin Sumberg on

Anyone with experience in the construction industry knows that form construction contracts are routinely used to memorialize agreements for the construction of new projects. Standardized contract forms promulgated by various...more

Drafting A Takeover Agreement

by Carlton Fields on

This article discusses the issues an owner, lender, completion contractor, and surety should consider when drafting a takeover agreement. Although each of these four main parties may share the basic goal of seeing the project...more

TRANSACTIONAL: Construction: ‘Back-to-back’ – the pass-through of construction risk from project agreement through to subcontracts...

by King & Spalding on

When passing risk through to various sub-contractors to a PPP or energy infrastructure project, it is important to ensure that the core sub-contracts are drafted on a ‘back-to-back’ basis with the project agreement. This...more

Although Unlikely to be Immediately Adopted Elsewhere, A Recent Tennessee Decision Regarding an Owner’s Liquidated Damage Claim...

A Tennessee Court of Appeals recently held that liquidated damages under an AIA Contract (A201 -1997 Gen. Conditions) are neither automatic nor self-executing. RCR Building Corp. v Pinnacle Hospitality Partners, 2012 WL...more

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