News & Analysis as of

Construction Contracts Retention Funds

BCLP

Changes in the Payment and Adjudication Processes Regarding Variations and Time-related Disputes

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In May 2024, the Hong Kong Government introduced the Construction Industry Security of Payment Bill (Bill) to the Legislative Council for first reading. If the Bill is passed into law, the Bill will introduce a statutory...more

Latham & Watkins LLP

Hong Kong Court Resolves Conflicting Authority on Trust Claims

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This resolution is important for contractors’ rights to retention monies in construction contracts. The Hong Kong Court of First Instance (CFI) held in a recent judgment that, whilst the absence of segregation is not...more

Mayer Brown

Legal developments in construction law - December 2023

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Continuing duty to advise or warn? How do you know? Whether, or not, a consultant has a continuing duty to advise or warn can be a challenging question to resolve....more

Bradley Arant Boult Cummings LLP

The American Rule Doesn’t Stand: Contractor Uses Offer of Judgment to Recover Attorneys’ Fees in Retention Dispute

Last week we saw the Menard court reject the use of an indemnity clause to shift fees in a dispute between contracting parties. This week, a very recent decision from Nevada highlights another creative way to shift fees where...more

Miller Nash LLP

Retention Reform Bill Passed in Washington for Private Construction Projects

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A recent Washington Bill 5528, sponsored by the Northwest Wall and Ceiling Contractors Association and the American Subcontractors Association of Washington, along with many other industry trade groups, successfully passed...more

Allen Matkins

In This Case, The "Crux Of The Biscuit" Was The Missing Apostrophe

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Consider the following provision of in a contract between a general contractor and a subcontractor...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Construction One-Minute Read: Illinois Restricts Retainage on Private Construction Projects

Every private construction project in Illinois will be affected by a new law, effective immediately. The Contractor Prompt Payment Act (815 ILCS 603/1, et seq.) was amended to restrict the use of retainage on construction...more

BCLP

Retention Release?

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Build UK recently published a set of minimum standards to be applied when using retentions in the construction industry, as well as their roadmap to zero retentions by 2023. Retentions can have a huge impact on cashflow in...more

BCLP

Practically complete or completely impractical? Navigating the pitfalls of what constitutes practical completion

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Many a construction dispute turns on defects. A significant subset of those turn on whether the existence of defects prevents practical completion from taking place. Originally published on the Practical Law Construction...more

Troutman Pepper

Under California’s Prompt Payment Statute, a Direct Contractor May Not Withhold Retention From a Subcontractor Simply Because a...

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United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., 2018 Cal. Lexis 3510 (May 14, 2018) - In 2010, Universal City (“Universal”) hired Coast Iron & Steel Co. (“Coast Iron”) to build a new ride at the Universal...more

Snell & Wilmer

California Supreme Court Clarifies “Good Faith Dispute” Under California’s Prompt Payment Law

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In recent case of United Riggers and Erectors, Inc. v. Coast Iron and Steel Company ___ Cal. 4th ___ (May 14, 2018 Case No. S231549), the California Supreme Court addressed whether a direct contractor can withhold payment...more

Sheppard Mullin Richter & Hampton LLP

It’s All a Matter of [Statutory] Construction: Supreme Court Narrowly Interprets the Good Faith Dispute Exception to Prompt...

On May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good...more

Sheppard Mullin Richter & Hampton LLP

“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention

It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory...more

Haight Brown & Bonesteel LLP

"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties

Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work....more

Snell & Wilmer

Final Acceptance Under Utah’s Retainage Law: It’s Not Over Until It’s Over

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Property owners seeking to insulate themselves from some of the inherent risks associated with construction projects often turn to retainage provisions to reallocate very specific risks—the risks of delay, defective...more

Haight Brown & Bonesteel LLP

Construction Alert: School District Flunks Public Contract Code Exam on Withholding Retention

On January 27, 2015, the Court of Appeal, Second Appellate District, affirmed, in part, a hefty trial judgment against the Rio School District for improperly withholding retention funds in the case of FTR International, Inc....more

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